RBI Sells $11.88 Billion in October to Stabilize Rupee Amid Volatility

• RBI net sold $11.88 billion in October, up from $7.910 billion, to counter heightened Indian rupee volatility.
• The central bank gross purchased $17.685 billion and sold $29.562 billion during the month.
• Rupee faced sharp depreciation due to FPI outflows, hitting record lows and crossing the 91-mark against the US dollar.
• RBI intervened heavily to defend the local currency, stabilize it, and curb concerns over imported inflation and market sentiment.
• The rupee traded between 88.20-91.03 against the US dollar in the last three months.

Why It Matters: RBI significantly increased dollar sales in October to stabilize the volatile Indian Rupee against the US dollar.