The Reserve Bank of India announced a special facility on 10 October to meet the daily dollar requirements of three government oil-marketing companies. Reuters and Financial Express reported that Indian Oil, Bharat Petroleum and Hindustan Petroleum would be able to use it from Monday, 12 October.
The arrangement supplies dollars directly to the companies rather than leaving all their demand in the spot foreign-exchange market. The announcement followed renewed pressure on the rupee, which had finished Friday close to its record low against the dollar.
The RBI also announced tighter rules for foreign-exchange derivatives. The oil-company facility is a policy response intended to ease market pressure; its announcement does not establish that the rupee has recovered or that fuel prices will fall. Its start date was still ahead when this morning brief was prepared.