The Indian rupee strengthened in early trade on Friday, gaining around 25–28 paise to touch 92.86 against the US dollar, as supportive measures from the Reserve Bank of India (RBI) helped ease demand pressure in the foreign exchange market.
The gain came after the RBI reportedly introduced a special dollar access window for state-run oil marketing companies. Instead of directly buying dollars from the spot market, firms like Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum can now source foreign currency through a structured credit arrangement. This is aimed at reducing sudden spikes in dollar demand.
Traders said this step helped calm sentiment in the currency market by lowering immediate pressure from one of the biggest sources of dollar buying in India. As a result, the rupee opened stronger and held onto gains in early deals.
Sentiment was also mildly supported by stable domestic equity markets and slightly improved global risk appetite. However, gains were limited as the US dollar remained firm globally, keeping emerging market currencies under some pressure.
Market participants noted that the RBI’s move is not about fixing a level for the rupee, but about reducing volatility and ensuring smoother forex market functioning. By spreading out dollar demand, the central bank aims to prevent sharp swings in the currency.
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