The Reserve Bank of India (RBI) sold a net $6.1 billion in the foreign exchange market in May even as the rupee sank to an all-time low amid a surge in crude oil ‌prices.

The RBI said in its monthly bulletin that it bought $22.2 billion and sold $28.3 billion in May. In April, the central bank had sold a net $8.9 billion.

On 20 May, the rupee sank to a record low of 96.96 per dollar on rise in oil prices, higher global bond yields and stronger dollar demand.

The RBI’s intervention and subsequent three concessional swap facilities on fresh FCNR(B) deposits, external commercial borrowings (ECBs) and overseas foreign currency borrowings (OFCBs) shored up the rupee. 

The RBI's net outstanding forward dollar sales increased to a record $106.6 billion as of end-May from $95.3 billion at the end of April.

In FY26, the RBI was a net seller of $53.1 billion in the foreign exchange market, the highest in any financial year.