The Reserve Bank of India (RBI) has capped weekly dollar purchases by oil refiners to pay off their debts to Iran in order to avoid pressure on the Rupee, three sources said on Monday. The rupee touched a near three-month low of 67.77 to the dollar last week, partly due to dollar purchases to settle a portion of the Iranian oil dues the week before. They have cleared $770 million in euros through Turkey’s Halkbank to National Iranian Oil Co (NIOC). The RBI declined to comment on specifics but reiterated in an email that the foreign exchange market should remain orderly. MRPL has settled $500 million in dues to Iran followed by $250 million by Indian Oil Corp. Last week Hindustan Petroleum Corp paid $17.5 million to NIOC.

Source: Hindustan Times May 30, 2016 15:00 UTC