RBI’s Bold Move: No Dollar Buys in July After 11 Years
In a historic shift, the Reserve Bank of India did not purchase a single US dollar in July 2025. Instead, it sold $2.54 billion to defend the rupee, which saw its steepest monthly fall of 2.23% this year.
RBI moved from routine dollar accumulation to defensive intervention, using spot and forward markets to curb volatility.
India’s forex reserves fell by $10.87 billion, from $699.7B to $688.8B. Foreign investor outflows plays a vital role in rupee depreciating 3.65% in FY26 so far, the sharpest in two years.
RBI’s action signals a new playbook—prioritizing currency stability over reserve expansion.
By: via AlliesFinServe #StockMarket #Bharat Telegram.me/AlliesFin
