A day after the Reserve Bank of India (RBI) said it would intervene in the currency futures market, data released by the central bank showed it had intervened in September itself. However, there was no intervention in October.
The RBI monthly bulletin released on Thursday shows the central bank both purchased and sold $355 million in the futures market in September.
“RBI intervenes in the domestic foreign exchange market as and when required in order to manage excessive volatility and to maintain orderly conditions in the market. As a further measure it has been decided to intervene in the Exchange Traded Currency Derivatives (ETCD) segment, if required,” the central bank said Wednesday.
Data shows RBI intervened in the spot market in October by buying close to $2 billion, after selling about $60 million in the spot market the preceding month. On Thursday, the rupee strengthened to 66.71 a dollar from 66.83.
