RBI sells $1.93 billion in spot forex market in January

The Reserve Bank of India remained net seller of dollars worth $1.93 billion in the spot forex market in the month of January.

As per the data of Monthly Bulletin for March 2014, the central bank purchased $375 million in January while sold $2.3 billion during the month.

However, in December RBI had purchased a net $3.48 billion in the spot forex market.

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 January by the RBI stood at $31.85 billion, versus $32.61 billion in the previous month.

Rising for the fifth day in a row, the rupee closed at 60.85 per US on Monday, up 22 paise from the previous close on the back of heavy capital inflows into equities.