India unveils tough curbs on dollar demand to defend rupee
_seal_is_pictured_on_a_gate_outside_the_RBI_HQ_in_Mumbai_July_30%2C_2013_R-APP.jpg&w=3840&q=75)
The Reserve Bank of India has introduced measures to stabilize the rupee by redirecting oil companies' dollar purchases away from the spot market. This move aims to reduce volatility as the currency faces pressure from rising oil prices and global bond yields.
Why it matters
Currency stabilization efforts are critical for managing inflation and maintaining economic stability in emerging markets like India.
BURSA SGX Home Currency Make The Edge Malaysia your preferred source on Google MUMBAI (Oct 10): India on Saturday unveiled fresh measures to shore up the rupee, redirecting oil companies' dollar purchases away from the spot market and tightening hedging rules as the currency hovers near record lows.
The steps by the Reserve Bank of India (RBI) come as persistent pressure on the rupee, fuelled by surging oil prices and global bond yields, has driven the currency down more than 7% this year.
The central bank will open a special window to meet the daily dollar requirements of three state-run oil-marketing companies, easing pressure on the spot market.
Under such an arrangement, used during periods of currency stress, the RBI provides oil companies dollars directly from its foreign exchange reserves. Indian Oil, Hindustan Petroleum and Bharat Petroleum will be allowed to access the facility from Monday, the RBI said.
Also covering this story
2 other newsrooms covered this event. We read each version separately.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in