RBI sells USD 2.2 bn in forex mkt in Apr-June qtr

Aug 10, 2012 |

mumbai

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The Reserve Bank sold over USD 2.2 billion from its foreign exchange reserves during the April- June quarter to arrest the continuous slide of rupee.

Of this the central bank sold the maximum quantity of dollars in May at USD 1.26 billion, followed by USD 700 million in June. It had sold USD 275 million in April.

The Indian rupee had touched a historic low of 57.32 on June 22. Overall it has declined over nine per cent in the April-June quarter.

The central bank also purchased USD 778 million dollars in May and USD 650 in June, RBI data said.

It further said in the forward dollar market, the RBI's outstanding sales of the US currency increased to USD 14.08 billion in June, from USD 10.31 billion in the previous month.

The sale of dollars by the RBI is indicative of its intervention in the forex market in the first quarter of the fiscal to arrest the slide of rupee.

The domestic currency has been depreciating for the past few months due to various reasons including capital outflow.

The rupee on Friday ended almost flat at 55.28 against the dollar over yesterday's close.

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