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Economic affairs secretary Arvind Mayaram said 30-40% of the state-run oil companies' dollar demand has returned to markets, CNBC-TV18 and Bloomberg TV reported on Thursday.
The rupee is expected to stabilise in 1-2 days as state-run oil dollar demand gets absorbed by markets, television channel CNBC-TV18 quoted Mayaram as saying.
The Reserve Bank of India in late August opened a special window to provide dollars directly to state-run oil companies in a bid to reduce selling pressure on the rupee.
Oil companies are the biggest buyers of dollars in markets.
The partially convertible rupee dropped to a more than one-month low of 62.73 earlier in the session and was trading at 62.56/57 at 2:01 pm versus Wednesday's close of 62.39/40.
