RBI Turns Net Dollar Buyer in June, Purchasing $561 Million

In a reversal of its June‑2025 foreign‑exchange stance, the Reserve Bank of India (RBI) became a net buyer of U.S. dollars, acquiring $561 million in the spot and over‑the‑counter (OTC) market. This follows net sales of $6.1 billion in May and $3.6 billion in June, marking a clear shift in the central bank’s currency‑market operations.

The RBI’s monthly bulletin reports the June purchase as roughly ₹5,505 crore. The move coincided with a new scheme that lets commercial banks offer higher yields on NRI deposits while the RBI takes on the currency risk via swaps, thereby boosting dollar inflows and helping the bank absorb excess foreign exchange and rebuild its reserves.

In the OTC segment, gross dollar purchases climbed to $30.9 billion against sales of $30.3 billion. The cumulative net sales for the fiscal year narrowed to a deficit of $14.5 billion, and the bank’s outstanding forward short position fell to $103.3 billion. Currency‑futures activity was balanced, with purchases and sales each at $2.9 billion, leaving zero net exposure.

The uptick in dollar buying comes amid a 6.5% month‑on‑month rise in resident remittances, which hit $2.5 billion in June—almost 20% higher than a year earlier—under the Liberalised Remittance Scheme.

This strategic pivot underscores the RBI’s intent to manage the rupee’s stability while capitalising on increased outward remittances and strengthening its foreign‑exchange reserves.