RBI steps up forex intervention, net sells $11.88 billion in October

The Reserve Bank of India (RBI) net sold $11.88 billion in the foreign exchange market in October, according to data released on Monday, reflecting the central bank’s efforts to support the rupee.

In its monthly bulletin, the RBI said it purchased $17.69 billion and sold $29.56 billion during the month. In September, the central bank had net sold $7.91 billion in the spot market.

The rupee closed at 88.7650 against the U.S. dollar in October, after hitting 88.80 in late September, which was a record low at the time.

The data also showed that the RBI’s net outstanding forward sales stood at $63.61 billion at the end of October, compared with $59.41 billion at the end of the previous month.

The central bank intervenes in both the spot and forward markets to curb exchange rate volatility.