Tuesday, July 9, 2013

RBI, oil companies discuss FX options as rupee slumps

Tue Jul 9, 2013 1:29pm IST

Reuters Market Eye - The Reserve Bank of India met oil retailers on Monday to discuss options, including accessing dollars at market rates from a special window, to ease pressure on the rupee, a company official told Reuters.

The RBI discussed options such as a dollar window against oil bonds or routing dollar sales through a single bank.

"They are suggesting we go to a single bank for our needs, but that's not workable for all the oil companies. As a PSU its better to go for competitive bidding so no one can question the decision later," the official from an oil company said, referring to public sector unit (PSU) oil companies.

Oil companies are the biggest domestic buyers of dollars, and removing their demand could ease pressure on a rupee that hit a record low of 61.21 against the dollar on Monday.

(Reporting by Prashant Mehra)

Source: http://feeds.reuters.com/~r/reuters/INbusinessNews/~3/4FH9PF-c0yk/story01.htm

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