In July 2026, the Reserve Bank of India (RBI) intervened in the foreign exchange market by selling U.S. dollars to support the Indian rupee and curb excessive volatility caused by global market uncertainty and capital outflows. By increasing the supply of dollars in the market, the RBI aimed to prevent sharp depreciation of the rupee and maintain orderly conditions in the foreign exchange market.
📚 MCQ:
In July 2026, why did the Reserve Bank of India (RBI) sell U.S. dollars in the foreign exchange market?
✅ Answer: To support the Indian rupee by reducing excessive volatility and preventing sharp depreciation in the foreign exchange market.
✅ In this video, you’ll learn:
The correct answer to the MCQ
Why the RBI intervenes in the foreign exchange market
How selling U.S. dollars helps stabilize the Indian rupee
The impact of forex intervention on India’s economy
Important Economy, Banking, and Current Affairs facts for UPSC, SSC, Banking, Railways, CDS, NDA, State PCS, CUET, and other competitive examinations
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