RBI Net Sold $10.02 Bn in Dec amid Sustained Pressure on Rupee

The Reserve Bank of India (RBI) net sold USD 10.02 billion in December due to high volatility in the Indian rupee amid geopolitical tensions and uncertainties over US tariffs.

December becomes the seventh consecutive month of net dollar sales by the central bank in the spot currency market.

According to the RBI's monthly bulletin data, the central bank net sold USD 9.710 billion in November, USD 11.877 billion in October, USD 7.910 billion in September, USD 7.695 billion in August, USD 2.540 billion in July, and USD 3.661 billion in June.

The central bank had bought USD 1.764 billion from the spot currency market in May.

Indian rupee remained in extreme stress in most months of 2025 and in January 2026, due to various issues, such as foreign portfolio flows turning intermittent.

Persistent merchandise trade deficits, coupled with periods of capital outflows, have weighed on the currency.

The central bank had to intervene in the market to reduce the undue volatility and stabilise the currency. However, despite heavy intervention by the RBI, the currency touched its historic low level of 92 against the US dollar.

Post this, the gradual appreciation was seen in the currency, and major appreciation came after the announcement of the interim trade deal between India and the US, which reversed the flows of the foreign investors in the country.

"Foreign portfolio investments and Indian rupee staged a comeback with investor sentiments turning around following the India-EU free trade agreement and the interim India-US trade deal," the RBI said in a bulletin.