Despite A Higher Oil Bill, Little Impact On Rupee

However, depreciation is definite and is seen to be caused by two factors - oil payments, and pressure from exporters demanding a weaker rupee.

The oil bill continues to be a millstone. Oil majors, which are currently resorting to lines of credit and foreign currency borrowings, cannot keep on rolling over payments indefinitely.

However, the mood is generally upbeat. Luis Miranda, vice president & head of forex derivatives at HDFC Bank says, There will be a steady stream of inflows from foreign institutional investors (FII) and overseas corporate bodies given the various concessions to the corporate sector.