The Indian rupee strengthened against its peers in Asia following reports that the Reserve Bank of India (RBI) has instructed state-owned oil refiners to conduct their dollar purchases through a designated credit facility. On Friday, the rupee appreciated by as much as 0.5 percent, reaching 92.7738 per dollar.
According to sources cited by Reuters, refiners have been directed to utilize a special credit line for their foreign exchange needs via the State Bank of India, the country’s largest bank. This approach aims to streamline dollar purchases through SBI rather than engaging multiple banks.
Anshul Chandak, head of treasury at RBL Bank Ltd., noted that news regarding the RBI’s direction for state refiners to utilize this special window instead of engaging in the open market has resulted in the dollar/rupee value opening lower. He also mentioned that optimism surrounding the potential extension of US-Iran negotiations is contributing to the rupee’s recovery.
This decision comes in the wake of robust measures implemented by the RBI last month to mitigate speculative trading against the rupee. The central bank mandated that lenders limit their onshore open positions to $100 million and prohibited the offering of non-deliverable forward contracts to clients.
The Indian rupee had experienced consistent declines against the dollar following the outbreak of conflict in Iran but has managed to recover some losses after the RBI intervened to reduce speculation in the currency market.
Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation typically represent some of the largest dollar purchasers in the currency market to finance their crude oil imports.
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Published on April 17, 2026.
