RBI sold $6 billion in May to defend rupee from oil price surge

The central bank typically operates through state-run banks, selling dollars in the spot market. It sometimes uses forward contracts to avoid signaling a specific level. The May data, released late Thursday, marked the first disclosure of the scale of the RBI's defense of the currency since oil prices climbed above $85 a barrel in April.

The scale of the intervention suggests the RBI is prioritizing exchange rate stability over reserve accumulation, traders said. The next monthly data release will show whether the central bank maintained its intervention pace in June as oil prices eased.