The Reserve Bank of India (RBI) sold $2.54 billion in July to stabilise the rupee, marking the first month in more than 11 years without dollar purchases, Moneycontrol reports, as the currency came under significant pressure.
“The RBI did not purchase any US dollars in July 2025 because of significant pressure on the Indian rupee, which led the RBI to intervene by selling dollars to stabilise the currency rather than buying them,” Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, told MC.
Before July, February 2014 was the last month the RBI did not buy dollars. The pause in purchases contributed to India’s foreign exchange reserves falling to $688.871 billion on August 1 from $699.736 billion on July 4, the report added.
India’s reserves include foreign currency assets, gold, special drawing rights and its IMF reserve position.
Expressed in dollar terms, foreign currency assets reflect changes in the value of non-US currencies such as the euro, pound and yen held in reserves.
Experts said the RBI’s decision to sell rather than buy dollars signals a move from routine reserve accumulation towards defensive interventions, using both spot and forward markets to curb exchange rate volatility and support currency stability.
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In July, the rupee depreciated 2.23%, the steepest monthly fall in 2025, following drops of 1.21% in May, 1.16% in January and 1.02% in February.
Moneycontrol reported on September 24, that the RBI has become more selective in spot market interventions despite the currency repeatedly hitting all-time lows.
The rupee has declined around 3.65% in FY26 so far, and 3.48% year-to-date against the dollar — the highest depreciation after two financial years.
External shocks, including uncertainty over US tariffs, the prolonged Russia-Ukraine war, and tensions in the Middle East, alongside domestic foreign investor outflows, have weighed on the currency.
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(Edited by : Sheersh Kapoor)
