The rupee has made a badly needed come back against the dollar as the RBI has launched dollar swap for three major public sector refiners. As a result, the Rupee appreciated against the dollar; ending severe depreciation during the previous two days. The RBI revealed that the measure will continue in the coming days as well.
A welcome feature of the RBI measure is that the swap facility will be available in the coming days also until a notice from the central bank comes. Technically the effect of the measure is RBI selling of dollars worth $300-500 million in the market daily.
The foreign exchange swap window offered by the RBI to three largest refiners is estimated to be between $300-500 million. It is estimated that the three companies- IOC, HPCL and BPCL buys foreign exchange worth these figures from the open market to import crude.
Hence, the rupee may not come under severe depreciation pressure in the coming days as happened on Wednesday.
On the international front, the Syrian issue has also lightened. This has abated the fear factor of oil getting further costlier in the global market.