RBI sells foreign exchange worth $310 million in spot market in October

The Reserve Bank of India (RBI) data showed that it sold foreign exchange worth $310 million in the spot market compared to a net sale of $1.51 billion in September. According to the central bank's monthly bulletin, their transactions involved the purchase of $36.6 billion and the sale of $36.9 billion.

During the same period, the Indian rupee witnessed 0.3 per cent depreciation against the US dollar, trading within a range of 83.0375 to 83.2825.

The RBI, as part of its efforts to manage exchange rate volatility, engaged in net forward sales totaling $14.6 billion by the end of October. This contrasts with forward purchases of $4.6 billion recorded at the close of the previous month.

These figures underscore the central bank's proactive role in intervening in both the spot and forward markets, aiming to stabilize and mitigate fluctuations in the exchange rate. Analysts will closely monitor future RBI actions as they navigate the complexities of the foreign exchange landscape.

(With Reuters inputs)