Business · Markets · 1 hr ago
Rupee rises more than 1% after RBI moves to curb dollar demand
India’s rupee opened at 95.73 to the US dollar on Monday, compared with Friday’s close of 96.76.
The rise followed new steps by the Reserve Bank of India (RBI), the country’s central bank, to reduce demand for dollars and support the currency.
The rupee had lost more than 7% against the dollar over the past year, amid high oil prices, a strong dollar, high global bond yields and weak capital flows.
Under one measure, the RBI will provide oil companies with dollars outside the interbank market, where banks trade currencies.
It also told banks to set aside funds for some import contracts and tightened rules on foreign-exchange deals, including reducing the limit for certain trades without proof of an underlying exposure.
These steps aim to ease pressure on the rupee, which had faced renewed weakness near 97 to the dollar.
The rupee opened more than 1% higher on Monday after the Reserve Bank of India announced measures to curb dollar demand.
It opened at 95.73 per dollar, compared with Friday’s close of 96.76.
At 9:14 a.m., it was trading at 95.76, according to Bloomberg data.
The measures include a special dollar window for oil marketing companies and stricter rules for some foreign-exchange transactions.
The rupee had fallen more than 7% year on year amid elevated crude prices, a strong dollar, high global bond yields and weak capital flows.
- Who
- The Indian rupee and the Reserve Bank of India.
- What
- The rupee rose more than 1% at the open after the RBI announced measures to curb dollar demand.
- When
- Monday, October 12, 2026. The RBI announced the measures over the weekend.
- Where
- India’s foreign-exchange market.
- Why
- The RBI’s measures aim to curb dollar demand and support the rupee, which has faced pressure.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
The RBI announced measures to curb dollar demand and support the rupee.
The rupee opened at 95.73 per dollar, compared with Friday’s close of 96.76.
The rupee was trading at 95.76, according to Bloomberg data.
- Opening rate
- 95.73 per dollar
- Friday close
- 96.76 per dollar
- Rate at 9:14 a.m.
- 95.76 per dollar
- Oil companies
- BPCL, HPCL and IOCL
- Derivative threshold
- Reduced to $5 million from $100 million
Sources
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