This Article is From Jul 12, 2014

RBI Net Buyer of $1.86 Billion in May

Mumbai:

The Reserve Bank of India (RBI) became net purchaser of dollars for a second consecutive month in May this fiscal year, buying $1.786 billion from the spot market.

During the month, the RBI bought $7.981 billion from the market while it sold $6.195 billion, monthly dta from the apex bank showed.

In April, the RBI purchased $7.85 billion and sold $1.980 billion, becoming a net buyer of $5.870 billion. In May last year, it net sold $107 million in the market.

In the entire FY14, the RBI net purchased $8.992 billion. It had bought $52.394 billion and sold $43.402 billion in the previous fiscal year.

The apex bank's intervention in the foreign exchange market is not described as increasing the forex cover but to curb volatility in the currency market.

In the forwards dollar market, the outstanding net forward sales at the end of May stood at $11.463 billion as against sales of $32.063 billion in the previous month.

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