Rupee firms nearly 1% to 95.83 as RBI's special dollar window kicks in
The rupee strengthened nearly one per cent to 95.83 against the US dollar on Monday after the Reserve Bank of India's special dollar window for the three state-run oil marketers took effect. The facility lets Indian Oil, HPCL and BPCL buy their entire daily dollar requirement — roughly $300 million combined — directly from the RBI's reserves, and will stay open “until further notice.”
The currency had closed at 96.73 on Friday, near its all-time weakest level. The RBI paired the window with tougher currency-derivative rules: it barred the rebooking of cancelled rupee forex derivative contracts, slashed position limits to $5 million from $100 million, and mandated a 20 per cent foreign-exchange risk reserve. Brokerage CLSA says the package could push the rupee toward 95.
Traders said the real test comes in the days ahead, when the initial relief fades and the market gauges whether foreign outflows and high crude prices keep pulling the rupee lower despite the central bank's firepower.
