Rupee Pressure: RBI Sells Dollars as Gold Fund Inflows Curbed

India's efforts to support the rupee are intensifying as fuel and gold imports weigh on the currency, according to India Global Review. The Reserve Bank of India has been selling dollars from its foreign-exchange reserves and buying rupees, reportedly helping the currency recover in recent days.

The report puts the fall in reserves from their September peak at around $50 billion. That decline is not necessarily a measure of intervention alone: foreign-exchange reserve values can also change with currency and asset valuations. The supplied summary does not break down the causes of the fall.

SBI, ICICI, Kotak, UTI and HDFC mutual fund houses have also restricted fresh investments in some gold-linked products, the report says. It cites reports of a regulatory nudge from SEBI, linking the measures to efforts to reduce dollar outflows and stabilise the rupee. However, the available summary contains no regulatory statement confirming that account, nor details of the affected schemes, limits or duration; it does not establish an across-the-board restriction on gold investment.