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RBI Sells Record $53B to Defend Rupee
27 May
Summary
- RBI recorded its largest net sale of foreign currency in at least 15 years.
- The central bank sold a cumulative $53.13 billion in FY26 to stabilize the rupee.
- Outstanding net forward sales hit a decadal high of negative $103.06 billion.
The Reserve Bank of India (RBI) executed its largest net sale of foreign currency in at least 15 years during the fiscal year 2025-26 (FY26). This record intervention of $53.13 billion was aimed at stabilizing the Indian rupee, which experienced a notable depreciation of approximately 9.5 per cent against the US dollar. These actions were a direct response to market pressures stemming from US tariff uncertainties and capital outflows.
The RBI's intervention in the spot market surged dramatically, surpassing previous records. In FY26, cumulative net dollar sales reached $53.13 billion, significantly exceeding the $34.51 billion sold in FY25. Monthly data indicates that intervention intensified from August 2025, with October 2025 witnessing the highest monthly sale at $11.88 billion. This period coincided with heightened concerns over global trade.
Further underscoring the pressure on the rupee, the RBI's outstanding net forward position also reached a decadal high, standing at a negative $103.06 billion in March 2026. While forward market sales do not immediately impact rupee liquidity, they serve as a crucial signal to foreign investors about the central bank's commitment to defending the currency and can help mitigate speculative pressures.
