RBI opens special window for OMCs to buy dollars

Mumbai: The Reserve Bank of India has decided to open a forex swap window to meet the daily dollar requirements of three state-run oil marketing companies, it said, as part of its steps to stabilise the rupee that fell to a record low on Wednesday.

Under the swap facility, the RBI will undertake sell/buy of the dollar-rupee forex swaps for a fixed tenure with the companies-Indian Oil Corp., Hindustan Petroleum Corp and Bharat Petroleum Corp.-through a designated bank, the central bank said on Wednesday.[caption id="attachment_1067575" align="alignleft" width="380"] Getting expensive. AFP[/caption]

The swap facility takes immediate effect and will remain in place until further notice, it said.

The rupee slumped to a record low near Rs 68.8 to the dollar on Wednesday on growing worries that foreign investors will continue to sell out of a country facing stiff economic challenges and volatile global markets.

Reuters