While spot sales amounted to $9.3 billion, forward sales were one of the highest – at $35.2 billion.
To be sure, the rupee breached the 85/$ mark in December.
Central bank intervention through October ensured the rupee did not drastically weaken against the dollar despite considerable dollar outflows, which coincided with an 11% retreat in the broadest equity gauges from the September 27 record highs.
Central bank measures in the currency market also minimised the impact on liquidity.
Significantly, foreign portfolio investors pulled out $10.9 billion in October. But the rupee fell only by 30 paise against the US dollar during the month to end at Rs 84.06.However, the US dollar strengthened by 3.2% (month-on-month) in October, while the MSCI currency index for emerging market economies decreased by 1.6% in October. The relative stability of the rupee was possible only due to heavy dollar sales by the central bank.The RBI probably continued with heavy dollar sales in November as well, money market analysts said. Foreign portfolio investors (FPIs) remained net sellers in Indian financial markets in November 2024, as a rising US dollar and yields dented sentiment for risk assets worldwide.
Net FPI outflows were $ 2.4 billion in November.