India, Oct. 12 -- The Reserve Bank of India's (RBI) measures to curb rupee volatility could ease near-term depreciation pressure and help withdraw surplus liquidity from the banking system, according to research reports.

The measures, including a dedicated dollar window for oil marketing companies through designated banks and higher costs for certain foreign exchange hedging transactions, are expected to reduce dollar demand in the spot market and curb speculative positions against the rupee.

"The immediate reaction on INR is expected to be very favourable- a likely move of USDINR towards sub-95 cannot be ruled out. Forward premia is likely to soften as OMCs and other importers' hedging gets contained," Kotak Mahindra Bank said in its r...