RBI Curbs Oil Firm Dollar Buys, Rupee Firms

The Indian rupee strengthened on Friday after Reuters reported that the Reserve Bank of India directed state-run oil companies to limit their dollar purchases, a targeted intervention aimed at reducing structural demand pressure on the currency. Oil companies are among the largest and most consistent buyers of dollars in the Indian foreign exchange market, making their demand a reliable lever for the RBI when the rupee comes under stress. By restricting that channel, the central bank effectively tightened dollar supply conditions without deploying foreign exchange reserves directly. The move builds on a package of measures the RBI has introduced over the past two weeks, which have collectively narrowed the rupee's underperformance relative to other Asian currencies. Traders will now watch whether the currency's recovery holds absent continued intervention, and whether RBI sustains the restrictions on oil company dollar demand or allows normal purchasing to resume as pressure eases.