RBI says did not intervene in forex market in Feb

RBI says did not intervene in forex market in Feb

Mumbai: The central bank did not buy or sell dollars in the foreign exchange market for the third straight month in February, the central bank’s monthly bulletin showed on Tuesday.

The rupee had been fairly volatile in February, moving both ways, and traded in a range of 46.865-45.94 to the US dollar.

In 2009, the Reserve Bank of India (RBI) sold a net $5.8 billion to prevent the rupee from depreciating sharply.

Though the rupee had dropped to a record low of 52.2 per dollar in early March 2009, yet it ended the fiscal year 2009-10 up 4.7% helped by large foreign fund inflows along with periodic central bank intervention.

From April to February, the first 11 months of the 2009-10 fiscal year, the RBI has been a net seller of $2.6 billion.

On Tuesday, the partially convertible rupee closed at 44.48/49 per dollar, off the day’s low of 44.68, but still a tad lower than its 44.47/48 close on Monday. It had touched a high of 44.18 on Monday, its strongest since 8 September 2008.