# Rupee rebound expected with RBI measures

> RBI curbs boost rupee short-term but depreciation pressure lingers.
- Title: Rupee rebound expected with RBI measures · mint | Shortify
- Summary: RBI curbs boost rupee short-term but depreciation pressure lingers. RBI's dollar supply to oil companies and tighter forex rules may lift rupee 1% Monday…
- Keywords: rbi, rupee, foreign exchange, forex reserves, oil companies, dollar, speculative trades, crude oil prices, capital outflows, balance of payments, money, business
- Source: mint — https://livemint.com/market/rbi-rupee-support-measures-versus-dollar-11791712027213.html
- Author: Subhana Shaikh
- Published: 2026-10-12T00:30:43+00:00
- Read time: 1 min
- Topics: rbi, rupee, foreign exchange, forex reserves, oil companies, dollar, speculative trades, crude oil prices, capital outflows, balance of payments, money, business
## RBI moves to support rupee
The RBI announced a dedicated window for dollar deposits to state-run oil companies on 5 June to attract inflows and support the rupee.
## Rupee near record low
The rupee closed at 96.73 per dollar on Friday, near its record low of 96.96 in May, having depreciated 8% this calendar year and 11% in FY26.
## RBI tightens forex rules
The RBI will supply dollars directly to three state-run oil companies and tighten rules on currency derivatives to curb speculative trades.
## Short-term rupee boost expected
Emkay Global Financial Services expects the rupee to rise 1% on Monday due to RBI's measures.
## Long-term depreciation risks
High crude oil prices, capital outflows, and weak external balances will continue to pressure the rupee long-term.
## Economist warns on medium term
IDFC FIRST Bank's chief economist Gaura Sengupta says the rupee will still depreciate due to multi-year high US Treasury yields and crude oil at $100.
## RBI introduces FERR
The RBI created a Foreign Exchange Risk Reserve (FERR) requiring banks to maintain 20% cash reserves for derivative contracts exceeding $2 million.
## Market reactions to measures
Importers are increasing hedging while exporters hold back expecting further rupee depreciation.
## Forex measures curb speculation
The RBI barred rebooking of cancelled derivative contracts and lowered the threshold for derivative transactions without underlying exposure.
## RBI reserves impact
Foreign exchange reserves rose to $765 billion on 18 September but fell to $734 billion by 2 October amid RBI intervention.
## RBI's window for deposits
The RBI's dedicated window for FCNR(B) deposits closed ahead of schedule on 31 August, attracting $143.6 billion in inflows.
## Key takeaway

RBI's dollar supply to oil companies and tighter forex rules may lift rupee 1% Monday, but high oil prices and capital outflows threaten longer-term depreciation.