The Reserve Bank of India remained a net seller of dollars in the foreign exchange market in May 2026, continuing its market intervention for another month. However, the scale of selling was lower than in April, suggesting that the pace of action eased.
According to the reported figures, the RBI sold $6.1 billion on a net basis in May, compared with $8.9 billion in April. The month-on-month decline points to reduced intervention even though the central bank stayed on the selling side of the market.
The latest data indicates that the RBI was still active in managing forex market conditions, but with less intensity than in the previous month. Movements in the central bank’s dollar sales are closely watched because they can reflect efforts to smooth volatility in the rupee and maintain orderly market conditions.
For businesses, investors and currency market participants, the comparison between April and May highlights a moderation rather than a full reversal in RBI activity. The central bank’s May position shows that intervention continued, but at a noticeably slower pace.
