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Bulletin shows that India cenbank bought net $1.76 billion on the forex market in May.

In May, the Reserve Bank of India (RBI), according to data released Wednesday in its monthly bulletin, bought net $1.76 billion on the foreign exchange markets.

The RBI reported that it had purchased $9.1 Billion and sold $7.3 Billion during the month. The central bank sold $1.66 billion in April.

The Indian rupee fell by more than 1% in the month of May due to persistent uncertainty about U.S. Trade Policies, an armed conflict involving India and Pakistan and possible dollar buying interventions by central bank.

Data showed that the RBI's outstanding net forward sales stood at $65.2 Billion at the end April, compared to a net sale at $72.6 Billion at the end the previous month.

To reduce volatility in exchange rates, the central bank intervenes on both the spot and futures markets. The rupee was little changed on Wednesday, closing at 86.4075 US dollars. (Reporting from Jaspreet KALA)

(source: Reuters)