The Reserve Bank of India intervened to check all-time low rupee value in August by selling off 7.7 billion, the central bank published in its latest bulletin.
The central bank’s net sale of US dollars was at USD 7.69 billion in August, nearly three times higher than in the preceding month, according to the data on sale/purchase of US dollars in the bank’s bulletin.
The data also showed that the Reserve Bank did not purchase any US dollars in July and August.
Also Read: Rupee hits low of 88.80 against US dollar
The apex bank’s stated position is that it does not target any level or band for the rupee-dollar exchange rate, but intervenes in the forex market only when there is excessive volatility, to arrest the decline in value of the rupee against the American currency.
In August, the rupee depreciated by 1.6 against the US dollar.
The Indian rupee depreciated against the US dollar in September too, amidst elevated trade tensions, heightened global uncertainties, and persistent foreign portfolio investment outflows.
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