RBI sells net 9.8 billion dollars to support rupee

The Reserve Bank of India sold a net $9.76 billion in March to defend the rupee against volatility triggered by the Iran war. The RBI shifted to net selling after two months of dollar purchases as the currency hit record lows. The intervention reflected pressure from energy prices and capital outflows.

### War-Driven Volatility Hits the Rupee The Indian rupee fell 4% in March, marking its steepest monthly decline in more than six years. A surge in energy prices following the start of the conflict pressured the growth-inflation balance for the world's fastest-growing major economy. During the month, the rupee dropped to a then-record low of 95.21 per dollar.