RBI turns net buyer of dollars in February as rupee strengthens after trade deal

RBI bought billions in February, reversing January’s stance

The Reserve Bank of India shifted to being a net buyer of $7.4 billion in February, reversing January’s net dollar sales. The move appears to have aligned with a stronger rupee following the India-US trade deal announcement. In March, the rupee’s real effective exchange rate fell, signaling possible undervaluation that could boost export competitiveness.