The Reserve Bank of India continued active intervention in May by net selling about $6.0 billion in the spot foreign exchange market to curb rupee volatility driven by higher oil costs. In the month, the RBI bought roughly $22.2 billion and sold about $28.3 billion in the spot market, marking the third consecutive month of net sales as the central bank sought to smooth currency swings. The RBI’s May activity contributed to a FY26 net dollar sale of about $53.13 billion, the highest for any financial year to date, underscoring persistent currency stability efforts. Despite these interventions, the rupee held relatively steady with only a slight depreciation, while the forward market showed the outstanding net short dollar position rising to around $106.7 billion by end-May. Analysts note that the combination of RBI actions and improving inflows helped June’s rupee performance, even as global oil and geopolitical tensions weighed on sentiment.