RBI Sold at Least $8 Billion Last Week to Support Rupee, Bankers Estimate
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Last Updated: 7th September 2026 - 05:55 pm
The Reserve Bank of India (RBI) sold at least $8 billion in the foreign exchange market last week as it stepped up intervention to support the rupee, according to estimates from six bankers, reported by Reuters.
Estimates for the RBI's dollar sales ranged between $8 billion and $15 billion for the week. Sustained intervention helped the rupee rise to an over two-month high of 94.2850 per U.S. dollar on September 3.
The RBI's discounted hedging facility for overseas borrowings by state-run firms and banks, along with a free-of-cost hedging facility for banks to raise overseas foreign currency deposits, has drawn in more than $136 billion.
One banker estimated the RBI's dollar sales at around $15 billion during the week. Another banker at a state-run lender put the figure at nearly $10 billion to $11 billion for the week ended September 4, at least three times the amount sold in the previous week.
The bankers spoke on condition of anonymity as they were not authorised to speak to the media. The RBI did not immediately respond to an email seeking comment.
RBI's Dollar Sales Drain Rupee Liquidity
The RBI's dollar-selling interventions also drain rupee liquidity from the banking system, which had recently hit a record high.
High surplus liquidity can push interbank borrowing costs below the policy rate, affecting the transmission of monetary policy.
India's Forex Reserves Hit Record High
Through August 21, India's foreign exchange reserves stood at an all-time high of $740.8 billion.
Persistent concerns over rupee weakness have kept hedging flows tilted towards the US dollar. Importers have increased forward dollar purchases to guard against depreciation, while exporters have held back from selling dollars as they wait for better levels.
The rupee had fallen to a low of 96.96 per dollar in May before recovering in recent months.
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