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RBI Net Forex Purchase Hits $7.41 Billion in February 2026

The Reserve Bank of India purchased $7.41 billion net in the forex market during February 2026, its second straight month of net dollar buys. The rupee gained 1% against the dollar in February, its first monthly rise in 10 months, following a US-India trade deal. However, the Middle East conflict triggered record foreign outflows, pushing the rupee to an all-time low of 95.21 in March before it recovered to around 93.50. The RBI projects India's GDP growth at 6.9% for 2026-27, but warns of uncertainties from global trade tensions and West Asia instability.

Key Points: RBI net forex purchase rose to $7.41 billion in February

  • RBI net forex purchase at $7.41 billion in February
  • Rupee gained 1% in February, first monthly gain in 10 months
  • Net forward dollar sales rose to $77.67 billion
  • Rupee hit all-time low of 95.21 in March, now at 93.50
  • RBI projects India GDP growth at 6.9% for 2026-27
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RBI net forex purchase rose to $7.41 billion in February

RBI net forex purchase rose to $7.41 billion in February, rupee gains 1% amid trade deal, but Middle East conflict disrupts markets.

"The recovery of the rupee, however, was short-lived as the breakout of the conflict in the Middle East disrupted global energy markets - RBI bulletin"

New Delhi, April 23

The Reserve Bank of India purchased $7.41 billion in the foreign exchange market during February this year on a net basis, marking the second straight month of net dollar buys, data from the monthly bulletin released on Thursday showed.

The value of the Indian rupee rose 1 per cent vis-a-vis the dollar in February to post its first monthly gain in 10 months following the announcement of a trade deal between India and the US.

During the month, the RBI purchased $21.4 billion and sold $13.99 billion. In January, it had bought a net $2.5 billion.

The RBI's net outstanding forward dollar sales stood at $77.67 billion as of end-February, compared with $67.77 billion at the end of the previous month.

The recovery of the rupee, however, was short-lived as the breakout of the conflict in the Middle East disrupted global energy markets, triggering record foreign portfolio outflows from Indian capital markets.

The rupee plunged to an all-time low of 95.21 in late March but has since been shored up by central bank measures to curb speculative trading. The Indian currency currently hovers at around 93.50 per US dollar.

Meanwhile, the RBI has projected India's real GDP growth at 6.9 per cent in 2026-27, and the bulletin says this reflects the sustained resilience in domestic economic activity supported by private consumption and robust fixed investment.

However, it also states that these baseline assumptions are subject to uncertainties emanating from the evolving global trade landscape and heightened tensions in West Asia.

Global economic activity has remained broadly resilient through H2:2025 and into early 2026, prompting the IMF to revise the global growth forecast marginally upward to 3.3 per cent for 2026 in its January 2026 update of the World Economic Outlook. However, this resilience is in specific sectors and regions, driven predominantly by technology-related investment, particularly in artificial intelligence infrastructure, and concentrated mainly in North America and parts of Asia, rather than reflecting broad-based demand recovery, the bulletin states.

Persistent geopolitical tensions continue to cloud the outlook. The current West Asia conflict has intensified with attacks on energy infrastructure across the Gulf, disrupting global energy supply. The selective closure of the Strait of Hormuz has severely impacted the trade in the Gulf region. Overall, the conflict has significantly deteriorated the near-term outlook on global trade and growth. Wider fiscal imbalances in major economies could push up long-term interest rates and tighten global financial conditions, with adverse spillovers for EMEs through capital outflows, the RBI bulletin added.

- IANS

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Reader Comments

S
Sarah B
As someone following India's economy from abroad, it's impressive how the RBI managed to shield the rupee by buying $7.41 billion net. The 1% gain in February was short-lived due to the Middle East conflict, but at least the central bank is proactive. Hope the government focuses more on renewable energy to avoid future oil shocks.
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Arun Y
The RBI bulletin mentions geopolitical risks, but honestly, the real worry is FII outflows. Record foreign portfolio outflows in March show that foreign investors are jittery. The 93.50 rupee level is still fragile—any escalation in West Asia could send it crashing again. Let's hope diplomacy works better than interventions.
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Priya S
All this forex talk aside, what about the common person? The rupee depreciation and oil price spikes will eventually hit petrol, diesel, and LPG prices. The RBI may be buying dollars, but household budgets are already strained. Need price stability more than GDP numbers. 😕
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Naveen S
Interesting data—net forward sales jumping to $77.67 billion means the RBI is heavily hedged. The IMF revising global growth to 3.3% for 2026 is fine, but the bulletin rightly flags that it's AI-driven and not broad-based. India needs to diversify its trade partners beyond the US and West Asia to reduce vulnerability.
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James A
Watching from the UK, the RBI's strategy seems measured but reactive. The trade deal with the US gave a brief boost, but the Strait of Hormuz disruption is a nightmare for oil importers like India. Long-term, India should accelerate its renewable capacity—solar and nuclear—to insulate from such

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