The Reserve Bank of India continued its role as a net dollar seller in April 2026, marking the second consecutive month of such operations. According to the latest RBI bulletin released on Monday, the central bank net sold USD 8.944 billion in the spot currency market during April. This follows USD 9.758 billion in net sales recorded in March 2026. On a gross basis, the RBI purchased USD 16.225 billion and sold USD 25.169 billion worth of dollars during April, as reported by the bulletin.
The Indian rupee remained under pressure in April and May 2026, primarily due to protracted geopolitical tensions and continued foreign portfolio investor outflows, according to the RBI bulletin. However, the currency showed signs of recovery in June 2026, supported by capital flow measures, easing geopolitical tensions, and a decline in crude oil prices. As reported by the RBI, the rupee has appreciated by 0.2% against the US dollar during 2026-27 so far, up to June 19, compared with its level at the end of March 2026. On Monday, the rupee closed at 94.63 against the US dollar, down by 30 paise from the previous close, while the currency closed the last fiscal at 94.84 against the US dollar on March 31.
The RBI's continued dollar sales reflect the central bank's role in managing foreign exchange reserves and supporting currency stability amid external pressures. The bulletin's reference to protracted geopolitical tensions and continued foreign portfolio investor outflows highlights the challenging environment facing the Indian rupee in recent months. The recovery in June 2026, supported by capital flow measures and easing geopolitical conditions, suggests some stabilization in the currency markets, with the rupee's recent performance showing gradual improvement despite ongoing challenges.
