RBI net buyer of dollar in October-November

The Reserve Bank of India (RBI) emerged a net buyer of dollars in October, after a gap of five months, buying nearly $4 billion of the US currency.

Since then, RBI is expected to have purchased foreign exchange to the tune of $34 billion till the central bank closed its forex swap window on 30 November 2013.

RBI bought $9.51 billion from the market in October and sold $5.58 billion during the month, RBI data released today showed.

During October, the rupee appreciated by 1.75 per cent against the US dollar, rising from 62.60 a dollar on 30 September to 61.50 per dollar on 31 October.

This is first time since April that the Indian central bank was a net buyer of dollars on a monthly basis.

RBI last remained a net buyer of dollars in April when it purchased $3.3 billion from the market and sold $2.78 billion.

RBI bought $9.51 billion from the market in October and sold $5.58 billion during the month, RBI data released today showed.

During October, the rupee appreciated by 1.75 per cent against the US dollar, rising from 62.60 a dollar on 30 September to 61.50 per dollar on 31 October.

In September, the RBI was a net seller of the greenback amounting to $3.55 billion, as per RBI data.

While RBI regularly buys and sells dollars, most often to save the rupee from falling further, there was no need of RBI intervention in October as the rupee was stable and even appreciated for most of the time, commentators opine.

RBI last emerged a net buyer of dollars in April when it purchased $3.3 billion from the market and sold $2.78 billion.

Between May and September this year, RBI remained net seller of dollar, intervening in the market to with dollars to help the rupee recover, after it fell over 25 per cent against the US currency between May and August.

The rupee touched its all-time intra-day low of 68.85 on August 28. It closed at 61.04 versus the dollar today.