MUMBAI: The size of the Indian central bank’s FX forward book shrank to $52.48 billion at the end of April, down $11.7 billion from the previous month, according to data released by the central bank on Friday.
The Reserve Bank of India’s aggregate short dollar position in FX forwards and futures had climbed to a record high of $88.7 billion in February amid dollar-selling interventions by the central bank to support the rupee which had declined to it all-time low of 87.95 that month.
India central bank bought net $14.36 billion in spot forex market in March, bulletin shows
The aggregate short dollar position had built up over months as the central bank intervened in the FX markets to support the rupee.
The shrinking of the size of the RBI’s FX forward book, meanwhile, has coincided with the rupee’s recovery which ended at 85.5775 on Friday.