India Central Bank Takes Steps to Support Rupee, Opens Dollar Window for Oil Companies
The facility will cover about $300 million a day for Indian Oil, Hindustan Petroleum and Bharat Petroleum as crude prices top $100 a barrel.
- On Saturday, the Reserve Bank of India announced a special dollar window for Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, and Bharat Petroleum Corporation Limited, effective Monday, October 12, 2026.
- Persistent pressure on the rupee, which has declined more than 7% this year, combined with crude oil prices surging above $100 a barrel, prompted the central bank to redirect oil companies' dollar purchases away from the spot market.
- The three companies require about $300 million daily to import crude oil, while the RBI mandated that forex dealers maintain a 20% "foreign exchange risk reserve" on derivative contracts to curb speculative activity.
- Addressing these requirements removes a major demand source from the market, though it will deplete foreign exchange reserves, which currently stand at about $735 billion, said Dhiraj Nim, FX strategist at ANZ Bank.
- While the facility remains open until further notice, underlying drivers including oil prices and capital flows persist. "The real test will be how reserves and the rupee behave in the coming week," Nim added.
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RBI opens dollar lifeline for oil PSUs as rupee comes closer to 97, crude tops $100
The Reserve Bank of India will provide a special dollar window for Indian Oil, HPCL and BPCL from October 12 to meet their entire daily foreign currency requirements as crude oil prices cross $100 a barrel and the rupee nears 97 against the US dollar.
India unveils RBI curbs on dollar demand to defend rupee, shifts oil firms' FX buys and tightens hedging rules
MUMBAI: 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 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 me…
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