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Rupee REER Falls to 101.49 in March 2025: RBI Bulletin

23 April 20251 min read
ECONOMYRupee REER Fallsto 101.49 in March2025: RBI Bulletin23 April 2025safalsetu.com

Why in the news

RBI’s monthly bulletin showed the rupee’s real effective exchange rate easing again in March 2025.

Key facts

MonthREER (40 currencies)
November 2024 (peak)108.14
December 2024107.2
January 2025103.66
February 2025102.37
March 2025101.49
  • A narrower inflation gap with trade partners also lowered REER and helped competitiveness.
  • An HDFC Bank economist said the rupee weakened early in March but steadied on capital inflows.
  • Forward book was $77.5 billion in January; spot net sales were $11.1 billion in January.
  • FY24: net purchases of $41.27 billion.

Exam angle

  • Source: RBI monthly bulletin; a falling REER means better price competitiveness.

Test yourself

1. What was the rupee's 40-currency REER in March 2025 according to RBI's bulletin?

The REER fell to 101.49 in March 2025 from 102.37 in February.

2. In which month did the rupee's REER peak at 108.14, as per the RBI bulletin data?

REER peaked at 108.14 in November 2024.

3. RBI's net short dollar forward position at end-February 2025 stood at what level?

It rose to $88.7 billion from $77.5 billion in January.