India’s central bank offloaded a net $9.76 billion in the foreign exchange market during March 2026, its most aggressive intervention in years. The move came as the rupee tumbled 4% against the US dollar in a single month, its worst performance since 2019.
The trigger: escalating conflict involving Iran that sent global crude prices climbing and drove foreign capital out of emerging markets at a pace that forced the Reserve Bank of India to step in with both hands.
The numbers tell a stark story
The $9.8 billion in net dollar sales represented a sharp reversal for the RBI, which had actually been a net buyer of dollars in January and February.
But the spot market sales only tell part of the story. The RBI’s forward dollar sales outstanding surged from $77.7 billion at the end of February to $103.06 billion by end of March. That $25.36 billion jump in forward commitments signals the central bank was deploying every tool available to stabilize the currency.
