India Said to Consider Selling Dollars Directly to Refiners

The Reserve Bank of India is considering selling dollars directly to oil importers to reduce exchange-rate volatility after the rupee fell to a record low yesterday, a central bank official said.

The recent widening of swings in the local currency may last only for a short period and will ease once global markets stabilize, the official said, asking not to be identified, citing central bank policy. India buys abroad 80 percent of the oil it uses and crude shipments accounted for 32 percent of the country’s $489 billion import bill in the year through March.