RBI Net Offloads $9.7 Billion in November as Short Dollar Positions Climb

Reserve Bank of India intervened actively in the foreign exchange market in November, with lower net dollar sales compared to October, as per data released in the central bank’s monthly bulletin. 

Dollar Purchases and Sales in November 

During November, the central bank purchased foreign currency worth $14.3 billion and sold $17.6 billion in the spot market.  

This resulted in a net dollar sale of $9.7 billion, easing from the net sale of $11.8 billion recorded in October, indicating relatively lower intervention intensity during the month. 

Expansion of Forward Market Short Position 

The RBI’s net short position in the rupee forward market increased to $66.04 billion by the end of November, up from $63.6 billion in October.  

Of the total outstanding position, $18.8 billion was concentrated in one-month contracts, $16.8 billion in contracts with maturities between 1 and 3 months, and $2.2 billion in positions maturing between three months and one year.  

The remaining $28 billion was locked in contracts with maturities exceeding one year. 

Rupee Valuation Signal From REER 

The real effective exchange rate (REER) of the rupee declined to 95.30 in December from 97.52 in November. REER measures the rupee’s value against a basket of currencies adjusted for inflation differences.  

A reading below 100 suggests the currency is weaker relative to the base year, potentially improving export competitiveness. 

Read More: RBI Extends Operational Restrictions on Konark Urban Cooperative Bank Until April 23, 2026! 

Conclusion 

Lower net dollar sales, a rising forward market short position and a softer REER together suggest the RBI continues to manage rupee volatility while allowing valuation adjustments aligned with external competitiveness. 

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