Mumbai, Oct. 12 -- The rupee is set to open sharply stronger on Monday after the Reserve Bank of India (RBI) moved over the weekend to curb speculative bets and divert dollar demand from the spot market, but market experts say the relief is likely to be short-lived.

From 12 October, the RBI will supply dollars directly to three state-run oil marketing companies and has tightened rules on currency derivatives. That may drive the rupee 1% higher on Monday, according to Emkay Global Financial Services. The RBI will meet the entire daily dollar requirement of Indian Oil Corp., Hindustan Petroleum Corp. and Bharat Petroleum Corp. through a special window, supplying dollars via designated banks and taking the companies' purchases out of the sp...