Indian central bank unloaded at least $8 billion last week to anchor rupee, bankers say

The Reserve Bank of India ramped up its foreign-exchange intervention last week, selling at least $8 billion to bolster the rupee, according to six bankers familiar with the matter. The size and timing reflect a period of heavy policy-driven dollar inflows that have given the central bank more leeway to intervene in the currency market. Market participants described the moves as a deliberate effort to anchor the rupee and curb sharp moves in the exchange rate amid ongoing global dollar strength and domestic inflows linked to policy measures. Observers noted that the intervention appears to be part of a broader framework of FX management, with the RBI using reserve-asset sales to absorb excess demand for dollars when flows are persistent or volatile. The report did not cite an official RBI comment, and the banks emphasized that the figures are based on conversations with traders and dealers rather than an official disclosure. The development underscores the central bank's willingness to deploy substantial intervention when needed to maintain currency stability in a volatile global environment, while continuing to monitor external financing conditions and domestic policy-driven flows that influence the FX market.