The Indian rupee's brisk fall against the US dollar was halted on August 29 with the Reserve Bank of India's move to directly supply dollar swaps to oil marketing companies (OMCs). The Indian currency on the day appreciated 225 paise to close at 66.55 per dollar, logging its biggest single-day gain in percentage terms in 26 years.
A day earlier, on August 28, the RBI launched a special forex swap window for three public sector oil marketing companies-IOC, HPCL and BPCL.
>{?The central bank's measure helped to scoop out huge dollar demand from the spot foreign exchange market and divert the central bank’s resources to genuine demand directly. The decision came after the Indian currency broke three psychological levels in three trading sessions since August 26 to close at an all-time low of 68.80 per dollar on August 28.