The Indian rupee extended gains on Wednesday, but continued to trade below the psychological 60 mark in early trades. The partially convertible rupee traded at 60.12 as of 09.32 a.m. against Tuesday's close of 60.14.
The Reserve Bank and market regulator Securities and Exchange Board of India (Sebi) took several steps late on Monday, though analysts remained skeptical about the effectiveness of these steps to decidedly reverse rupee's course.
On Tuesday, the RBI has reportedly asked state-run oil companies to buy dollars from a single bank to steady the volatile currency market, Reuters said quoting sources.
Oil companies are the biggest Indian buyers of dollars, so keeping down the number of people who know they are seeking dollars could help contain the rupee's volatility, dealers said.
In other measures, the government is taking steps to attract foreign direct investment and could review limits in sectors or issue a sovereign bond to non-resident Indians.
Finance minister P. Chidambaram is in the United States this week to drum up investment.
(With inputs from Reuters)
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