RBI Sells $9.758 Billion in Spot Market in March: Bulletin

Reserve Bank of India Sells $9.758 Billion in Spot Currency Market in March

The Reserve Bank of India (RBI) sold $9.758 billion on a net basis in the spot currency market in March, according to the central bank's monthly bulletin released on Friday. This move comes after the RBI purchased dollars for two consecutive months prior to that, with $7.409 billion being purchased from the spot currency market in February.

On a gross basis, the RBI purchased $19.880 billion in March, and sold $29.638 billion, as per the bulletin. The Indian rupee depreciated in April, though the decline was limited by the temporary ceasefire announcement and various measures undertaken by the RBI. Thereafter, the Indian rupee broadly mirrored movements in crude oil prices, reflecting developments in West Asia.

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In real effective terms, the Indian rupee depreciated in April due to depreciation of the INR in nominal effective terms and a relatively lower price index in India vis-à-vis its major trading partners. However, India's foreign exchange reserves remain comfortable, extending cover for goods imports for around 11 months and 90 per cent of the external debt outstanding as at end-December 2025, the RBI bulletin said.

On Friday, the Indian rupee rose for the second consecutive session to close at 95.73 (provisional) against the US dollar on softening of crude oil prices and supposed intervention by the Reserve Bank. Forex traders said markets found some comfort after comments from US Secretary of State Marco Rubio hinted that diplomatic talks linked to the Iran situation were moving in a constructive direction.

During 2025-26, foreign direct investment (FDI) inflows were higher than the previous year, both in gross and net terms. In March, net FDI remained positive for the second consecutive month, though gross inward FDI registered deceleration. Outward FDI declined in March, with more than half of the flows directed to Singapore, the UAE, and the Netherlands, RBI bulletin said.