In a bid to halt the sliding value of the rupee, the Reserve Bank of India (RBI) introduced a series of emergency measures this Saturday. With the currency hovering dangerously close to its all-time record low, the central bank has decided to establish a dedicated dollar window specifically for major state-run oil companies. Starting Monday, entities like Indian Oil, Hindustan Petroleum, and Bharat Petroleum will be able to source their daily dollar requirements directly from the RBI’s foreign exchange reserves, a strategic move intended to relieve the intense pressure currently weighing on the spot market.

Beyond direct intervention, the central bank is also tightening regulations on forex derivatives to curb speculative trading. The RBI has significantly slashed the limit for exchange-traded currency derivative positions from $100 million down to just $5 million and has prohibited the rebooking of any cancelled forex derivatives. Furthermore, dealers are now required to hold a 20 percent risk reserve against the notional value of all rupee-related derivative contracts. Despite previous efforts, including interest rate hikes, the rupee continues to struggle, closing recently at 96.73 per dollar—just shy of its historic low of 96.96.