Reports said the Reserve Bank of India (RBI) gave a fillip to the Indian currency by its decision to provide dollars to oil companies directly by opening a forex swap window.
Rupee had closed at a record low of 68.80 against the dollar in the last session while it went up to 66.85 per dollar shortly after the open.
The rupee slumped to a record low to the dollar on a continuing recession of confidence in the economy, posting its biggest single day fall in 18 years on Wednesday.
RBI earlier said that on the basis of assessment of current market conditions, it has decided to open a forex swap window to meet the entire daily dollar requirements of three public sector oil marketing companies (IOC, HPCL and BPCL).
Under the swap facility, Reserve Bank will undertake sell/buy USD-INR forex swaps for fixed tenor with the oil marketing companies through a designated bank. The swap facility gets operationalized with immediate effect and will remain in place until further notice.
--IBNS (Posted on 29-08-2013)