InvestorQ : Is it true that the RBI has been a net buyer of dollars in June? What does that mean?
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Is it true that the RBI has been a net buyer of dollars in June? What does that mean?

Answer
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Juvina Maggie answered.
2 months ago


RBI was a net buyer of the US dollar for the month of June to the tune of $9.82 billion. RBI bought $14.847 billion and sold $5.033 billion in the spot dollar market. For FY20 extending from Apr-19 to Mar-20, net dollar buying by RBI was $45.10 billion.

This basically shows that RBI has been trying hard to prevent the rupee from appreciating beyond current levels as it would hurt exports. Normally, RBI intervenes both on the buy and sell side depending on its intent to tweak the currency value versus the dollar.