RBI opens special dollar window for oil companies to support rupee
The Reserve Bank of India announced on Saturday that it will sell dollars directly from its foreign exchange reserves to meet the entire daily dollar requirements of Indian Oil, Hindustan Petroleum and Bharat Petroleum, effective Monday, October 12.
The special window eases spot-market pressure after the rupee closed at 96.73 per dollar — near its all-time weakest level of 96.96 hit in May — as state oil refiners' dollar demand has been weighing on the currency.
The central bank also tightened currency-derivative rules, slashing rupee position limits in exchange-traded derivatives to $5 million from $100 million, in a coordinated push to defend the currency.
Originally reported by Reuters. Article compiled by the Deccan Age desk.
