New Delhi, March 31 -- Amid sharp volatility in the currency markets and pressure on the Indian rupee, a report by the State Bank of India has suggested that oil marketing companies (OMCs) should be provided a special foreign exchange (FX) window to help stabilise the currency.

The report noted that with the rupee witnessing sharp depreciation in a volatile global environment, the large and regular dollar demand from OMCs is adding to market pressure. It is recommended that regulators create a separate mechanism to isolate this demand from the broader market.

"OMCs need to be offered a special window by the regulator that separates their daily demand (around USD 250-300 mn) from the market chores," the report stated.

It further explain...