A day after hinting that the central bank would take necessary steps to arrest the rupee's slide, RBI Governor D Subbarao today met Prime Minister Manmohan Singh and is believed to have discussed the issue with him. Although the rupee has recovered after yesterday's announcement by Subbarao on the possibility of selling dollars directly to oil companies, it had fallen to 56.07 to a dollar in the morning trade, after yesterday's close of 55.65. The meeting, according to sources, was also attended by Chairman of Prime Minister's Economic Advisory Council (PMEAC) C Rangarajan, who had favoured direct sale of dollars to oil marketing companies (OMCs) to ease pressure on rupee.
The oil firms buy dollars in large quantities to import crude from the international market. India's crude oil import bill was USD 155.6 billion in 2011-12. In the mid-session, meanwhile, the rupee was trading 26 paise higher at 55.39 on fresh selling of dollars by banks and exporters.