New Delhi, Oct. 12 -- The Reserve Bank of India's (RBI) move on Saturday to prop the rupee speaks of the relentless pressure the currency has been under. While the $144 billion-odd inflows that its recent forex package attracted bulked up its armoury, the rupee's slide persists. Now the RBI has opened a special window to supply oil importers with dollars directly.

Such a large chunk of dollar demand going off the market should buoy the rupee, even though it will deplete the RBI's forex reserves the same way selling dollars does. It has also mandated forex dealers to set aside 20% on derivative contracts as a forex risk reserve to buy hard currency.

This will raise hedging costs but can help dampen speculation against the rupee, just as ...