The Indian rupee opened 80 paise higher at ₹95.82 a dollar from ₹96.71 in the previous session, amid RBI’s move to tighten foreign exchange rules over the weekend.
The Reserve Bank of India (RBI) lowered threshold for taking positions without underlying exposure to $5 million equivalents from $100 million. Further the central bank, brought in foreign exchange reserve requirement of 20 per cent of notional value for derivative contracts exceeding $2 million. RBI also opened a special oil window for daily dollar requirement of oil marketing companies (BPCL, HPCL and IOCL); This reduces the dollar demand in the interbank market.
“With oil companies out of market ambit getting supplies from RBI rupee should gain towards 95 slowly and steadily as exporters will also sell,” said Anil Bhansali, Head of Treasury at Finrex Treasury Advisors.
While the 25bps rate hike didn’t help arresting the rupee’s depreciation, the latest measures are expected to show some respite.
The rate hike hasn’t brought the rupee the relief markets hoped for. But the RBI’s latest measures (providing dollars directly to IOC, HPCL and BPCL through a special window; mandating a 20 per cent foreign exchange risk reserve on specified derivative contracts exceeding $2 million; and tighter forex derivatives rules) signal a clear intent to defend 97.00. These fresh measures now signal a shift from rate action to managing dollar demand and currency positioning,” Amit Pabari, MD, CR Forex Advisors.
The foreign institutional investors however continue selling Indian equities, leading to a dollar outflow. On October 9, FIIs sold ₹3,568 crore worth of Indian stocks across BSE, NSE and MSEI, according to MSEI data.
Published on October 12, 2026
