RBI bought $7.78 bn in spot forex market in March

The Reserve Bank of India was a net buyer of dollars worth $7.78 billion in the spot forex market in March.

As per the data of Monthly Bulletin for May 2014, the central bank purchased $8.75 billion in March while it sold $970 million during the month.

However, in February, RBI had sold a net $530 million in the spot forex market.

For the entire 2013-14, there were net buys of $8.99 billion, showed the data.

RBI sells and purchases dollar in the market to check currency volatility.

In the forward dollar market, the outstanding net forward sales at the end of March by the RBI stood at $31.03 billion, versus $31.32 billion in the previous month.

The rupee on Monday closed flat at 60.05 per USD, after having surged to almost a 10-month high level of 59.51 per US dollar earlier in the day.