The Reserve Bank of India sold a net $8.94 billion in the foreign exchange market in April to support the rupee, which fell to record lows amid the U.S.-Iran war, data released Monday showed.
The central bank purchased $16.23 billion and sold $25.17 billion during the month, according to the RBI's monthly bulletin. In March, the bank had sold a net $9.8 billion. The Indian rupee dropped to a record low of 96.96 per dollar last month as rising oil prices and higher global bond yields weakened the currency. The RBI intervened over multiple trading sessions to stabilize the rupee.
Gold holdings and forward sales
The central bank's gold holdings remained unchanged at 880.52 metric tonnes during May. However, the value of these holdings decreased to $112.6 billion last month from $120.23 billion in late April, reflecting lower gold prices. The RBI's net outstanding forward dollar sales stood at $95.30 billion at the end of April, compared with $103.06 billion at the end of March, indicating a reduction in future dollar commitments.