How much did the Reserve Bank of India net sell in foreign exchange in May, and what was the primary reason?

The Reserve Bank of India net sold $6.1 billion in the foreign exchange market in May, as stated in its monthly bulletin. This intervention was conducted to defend the rupee, which fell to a record low of 96.96 per dollar amid a sharp rise in oil prices triggered by the Iran war.

What were the key policy measures taken by the RBI to stabilize the rupee in May?

To shore up the rupee, the RBI undertook firm foreign exchange intervention over multiple trading sessions and introduced a series of policy measures to attract dollar inflows, including tax cuts on foreign debt investments and incentives for raising overseas foreign exchange deposits.

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