With oil prices reaching new highs and domestic oil companies' demand for foreign exchange growing, a calculated change in their payment strategy has helped take some pressure off the rupee in recent weeks. |
Foreign exchange dealers said oil importing companies were making their payments on a day-to-day basis instead of settling their dues at the end of the month. This strategy works well at a time when oil prices are volatile, according to a dealer. |
The forex market would earlier witness a spike in demand towards the end of the month. According to a dealer, every $1 increase in the price of Dubai crude adds $675 million to India's import bill. |
While oil companies have prudently changed their dollar-buying strategy, the RBI has also started intervening heavily in the market. |
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories
Over 30 subscriber-only stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app