• RBI's $8-15 billion dollar sales last week drained rupee liquidity from the banking system, impacting interbank borrowing costs Published September 7, 2026 Updated about 13 hours ago By Reuters MUMBAI: The Reserve Bank of India ramped up its FX intervention last week, selling at least $8 billion to bolster the rupee, six bankers said, as a deluge of policy-driven dollar inflows gave the central bank more room to support the currency. The bankers estimated the RBI’s market presence at between $8 billion and $15 billion, with sustained interventions helping lift the rupee to an over two-month high of 94.2850 on September 3. The central bank’s discounted hedging facility for overseas borrowings by state-run firms and banks, alongside a free-of-cost hedging facility for banks to raise overseas FX deposits have drawn in more than $136 billion. These inflows have likely given the RBI more room to conduct sizeable interventions, one of the bankers familiar with the RBI’s market interventions said, though their estimates of the scale of dollar sales varied. This banker estimated the RBI’s dollar sales last week at around $15 billion. Another banker at a state-run lender quantified it at nearly $10 billion to $11 billion for the week to September 4, at least three times the amount in the previous week. All the bankers requested anonymity as they are not authorised to speak to the media. The RBI did not immediately respond to an email seeking comment. The RBI’s dollar-selling interventions also drain…