MUMBAI: The Reserve Bank of India's net forward dollar book fell by $6.49 billion in up to one-year maturity in December, compared with a net addition of $3.12 billion in the previous month, according to Reuters calculations based on data from the central bank's website.
The central bank likely sold dollars in the forwards in December to contain a volatile rupee, which moved in 61.77-63.89 band, while it may have also matured some of its forward dollar purchases which could have led to an overall fall in the forwards position on month, dealers said.
The RBI's net forward outstanding position up to one year was $32.81 billion as of December-end compared with $39.31 billion in November, according to the calculation.
The total short position in the up to one-year forwards market was $4.28 billion as of December-end, higher than $2.28 billion in November and the total long position was $37.09 billion versus $41.58 billion.
The aggregate short positions in forwards for above one year stood at $25.97 billion, the RBI data showed.
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