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No takers for rupee payment for oil imports

The default payment currency for all contracts for import of crude oil is US dollar as per the international trade practice

The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.08 per cent lower at 105.77.

The increase comes as a welcome relief as RBI uses the country's forex reserves to stabilise the rupee when it turns volatile.

The rupee was trading at 83.27 vis-a-vis the US dollar in pre-noon trade on Wednesday down from 83.25 in the previous session.

The dollar index last sat around 105.57, having lost over 0.5% in the previous session as U.S. Treasury yields tumbled.

A weak American currency against major rivals overseas also supported the domestic unit and restricted the fall, forex traders said.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell marginally by 0.06 per cent to 104.17

Rising crude oil prices and strengthening dollar, however, weighed on the Indian currency, according to forex traders.