RBI sold $6 billion in May to defend oil-hit Indian rupee, data shows

The RBI sold a net $6 billion in May, purchasing $22.2 billion and selling $28.3 billion, to defend the rupee which had touched a record low of 96.96 per dollar on oil price and global yield pressures. The central bank also rolled out dollar-inflow measures such as tax cuts on foreign debt investments, alongside forward dollar sales reaching a record $106.6 billion by end-May. The RBI bulletin noted a revival in foreign portfolio flows into bonds and equities and said forex reserves remain comfortable at around 10 months of import cover, though flagged risks from rising oil prices, uneven monsoon, and food inflation.