New Delhi, Feb. 21 -- The Reserve Bank of India aggressively sold dollars in the forward market in the December quarter as compared to the spot market, in an effort to support rupee liquidity in the system.

Sales in the forward market went up by $55 billion during the quarter, with $68 billion outstanding net forward sales at the end of December. During the same period, RBI sold $44 billion in the spot market, data from the central bank's February Bulletin showed. The biggest sales were in October when RBI sold $34 billion in the forward market, and $9 billion in the spot market.

"RBI intervention data suggests a possible shift in strategy from spot market interventions towards forward contracts. This approach may aim to minimize the im...