RBI bought $254 mn in spot forex market in February

The Indian rupee depreciated by 0.9% against the US dollar in February

RBI logo. Credit: Reuters Photo

The Reserve Bank of India (RBI) bought a net of $254 million in the spot foreign exchange market in February, according to data released on Friday.

The RBI said it purchased $4.38 billion and sold $4.13 billion in February.

In January, the central bank had sold a net of $384 million in the spot market.

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The Indian rupee depreciated by 0.9 per cent against the US dollar in February and hit a four-month low of 82.95 on Feb. 27.

The RBI's net outstanding forward purchase stood at $20.47 billion as of end-February, compared with a net purchase of $21.73 billion at the end of January, the data showed.

The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The currency was at 82.09 to the dollar on Friday.