The Reserve Bank of India's (RBI) monthly bulletin data has showed that the RBI net purchased $7.409 billion of forex from the spot currency market in February. On a gross basis, during the reported month, the central bank bought $21.403 billion, while it sold $13.994 billion. This marked the second straight month of net dollar purchases, following a net buy of $2.526 billion in January, after seven consecutive months of net sales. 

Data further showed that earlier, the RBI had net sold $10.02 billion in December, $9.710 billion in November, $11.877 billion in October, $7.910 billion in September, $7.695 billion in August, $2.540 billion in July and $3.661 billion in June. It noted that the rupee appreciated from early February 2026 on the announcement of the interim India-US trade deal agreement, but weakened in March amid escalating tensions in West Asia. While implied option volatility, on average, moderated in H2 compared to H1, it remained high due to persistent risk-off sentiment and geopolitical tensions. 

To curb speculation and maintain stability in the currency market, the central bank introduced a prudential measure on March 27, 2026, that limited the net open position in INR (NOP-INR) of authorised dealers in the onshore deliverable market to within $100 million at the end of each business day. The move was aimed at curbing excessive speculative positioning and mitigating systemic risks.