Kamal Ghorui
Mumbai: The rupee regained 92 levels and closed at 92.93, 27 paise stronger then its previous close. The gains followed reports that the RBI has asked oil companies to not purchase dollars from the open market but to rely on a line of credit provided through SBI.Such a move would remove one of the major sources of demand from the interbank foreign exchange market. Dealers said that the initial gains were on account of a policy move but it was a pointer to RBI preparing for a medium term volatility in the forex market. The RBI did not comment on the news of a special window for oil companies.The news of the Strait of Hormuz being reopened for shipping traffic came after market hours. Dealers said that the consequent fall in crude oil prices would be a major positive for the rupee.After being the worst performer among Asian currencies in the first quarter, the rupee has gained significantly since end-March and is the second best performer among Asian currencies.Meanwhile, India’s forex reserves jumped $3.8 billion to nearly $701 billion during the week ended April 10, said RBI. The kitty had expanded to an all-time high of $728.5 billion during the week ended Feb 27 this year, before the onset of the West Asia conflict.
