- By Akansha Pandey
- Tue, 21 Oct 2025 04:02 PM (IST)
- Source:JND
The Reserve Bank of India (RBI) sold 7.7 billion US dollars in August to control exchange rate volatility and prevent the rupee's depreciation against the US currency.
According to the US dollar sale or purchase data published in the RBI's latest bulletin, the central bank's net US dollar sales in August stood at 7.69 billion US dollars, which is almost three times higher than the previous month.
No US Dollars Purchased In July And August
According to the data, the central bank did not purchase any US dollars in July and August. The RBI's stated position is that it does not target any specific level or range for the rupee-dollar exchange rate; rather, it intervenes in the foreign exchange market only when there is excessive volatility.
Significant Fall In Rupee Against Dollar In August
The rupee experienced a sharp decline against the dollar in August. Following this, the Indian rupee continued to register a fall against the US dollar in September amidst rising trade tensions, increasing global uncertainties, and continuous foreign portfolio investment outflows.
Current Dollar Rate
The central bank intervenes in the spot and forward markets to curb exchange rate fluctuations. On October 20, the rupee closed slightly higher at 87.9275 against the dollar. The RBI is expected to re-enter the market via state-owned banks, which will likely provide support to the rupee near the 88 level.
Also Read: Bihar Election 2025: Why Is Tejashwi 'Forced' To Campaign Against His Own RJD Candidate? Explained
The rupee has been one of the worst performers among Asian currencies, recording a significant depreciation of 4.61 percent so far this year, with September being the worst month. However, this Monday and Tuesday, it rose by 10 paise, reaching 87.9620 on Tuesday. During October, the rupee has strengthened by 0.39 per cent, but over the last 12 months, it has fallen by 4.61 percent. The rupee hit an all-time low of 88.89 on September 23.