{
  "id": 13858030,
  "title": "India steps up currency defense with tougher US Dollar curbs — Reuters",
  "url": "https://urgent.news/2026/10/12/india-steps-up-currency-defense-with-tougher-us-dollar-curbs-reuters",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-12T02:30:38.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/india-steps-up-currency-defense-with-tougher-us-dollar-curbs-reuters-202610120230"
  },
  "original_language": "en",
  "account": "India has introduced new measures to strengthen the Indian Rupee (INR), as the currency struggles to stay afloat near record lows. The Reserve Bank of India (RBI) announced these steps in response to persistent pressure on the INR, which has been exacerbated by soaring oil prices and higher global bond yields. To alleviate the stress on the spot market, the RBI will set up a dedicated window to cater to the daily dollar needs of three state-run oil-marketing companies. This mechanism, previously employed during periods of currency volatility, enables the RBI to provide dollars directly to these oil companies from its foreign exchange reserves. The Indian Oil Corporation, Hindustan Petroleum Corporation, and Bharat Petroleum Corporation will be able to utilize this facility starting from Monday. The RBI's primary objective is to maintain price stability while considering the goal of growth, primarily achieved through interest rates. The central bank also strives to keep the exchange rate stable, ensuring it does not lead to excessive volatility or hinder the operations of exporters and importers, given India's heavy reliance on foreign trade, particularly in oil. The RBI convenes six times bi-monthly to deliberate on monetary policy and, if required, modify interest rates. When inflation exceeds its 4% target, the RBI typically hikes interest rates to curb borrowing and spending, which can bolster the Rupee. Conversely, if inflation falls significantly below the target, the RBI may lower rates to stimulate lending, which might negatively impact the INR. The RBI actively intervenes in foreign exchange markets to maintain the exchange rate within a narrow band, ensuring that Indian importers and exporters are not exposed to unnecessary currency risk during times of FX volatility. It achieves this by buying and selling Rupees in the spot market at key levels and employing derivatives to hedge its positions.",
  "summary": "India unveiled a new measures to boost the Indian Rupee (INR), redirecting oil companies' US Dollar purchases away from the spot market and tightening hedging rules, Reuters reported on Saturday. The move comes as the domestic currency trades near record lows.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}