The Reserve Bank of India (RBI) made net purchases of the US dollar to the tune of US$ 554 mn in May 2016. This is the third consecutive month of net dollar purchases by the RBI. The Central Bank has remained net buyer to the tune of US$ 6.6 bn in the spot markets in the past three months.
The RBI's dollar purchases rose to US$ 4.4 bn in May 2016 from US$ 2.6 bn in the preceding month. The apex bank's dollar sales rose sharply to US$ 3.8 bn from US$ 1.3 bn in the preceding month. This was the highest dollar sales by the RBI in the past three months.
The RBI's outstanding net forward sales stood at US$ 5.75 bn by end-May 2016. It had stood at US$ 4 bn by end-April 2016.