RBI Absorbs $561 Million in June as Inflows Pick Up

The Reserve Bank of India (RBI) absorbed $561 million in June as inflows into the country picked up, data released on Tuesday showed. This marks a significant shift from the previous month, when the RBI sold a net $6 billion.

The central bank purchased $30.89 billion and sold $30.33 billion in June, with a net absorption of $561 million. The RBI's gold holdings remain unchanged at 880.52 metric tonnes since May 22.

Analysts suggest that the RBI has used some of the inflows to reduce its forward dollar liabilities and support the rupee through interventions in the foreign exchange market. The RBI's net outstanding forward dollar sales stood at $103.3 billion as of end-June, compared to $106.7 billion at the end of May.