October 31, 2012
The Indian rupee pared its early gains and declined against the U.S. dollar in late morning deals on Tuesday after the Reserve Bank of India decided to keep its key rates unchanged as widely expected.
Indian Rupee Declines Against U.S. Dollar
October 31, 2012
The Indian rupee pared its early gains and declined against the U.S. dollar in late morning deals on Tuesday after the Reserve Bank of India decided to keep its key rates unchanged as widely expected.
Indian Rupee Declines Against U.S. Dollar
The Reserve Bank of India (RBI) left the repo rate unchanged at 8 percent and the reverse repo at 7 percent in its second quarter review. The repo rate is the rate at which the central bank lends to banks and the reverse repo rate is the rate at which it accepts deposits from banks.
The cash reserve ratio was lowered to 4.25 percent from 4.50 percent, effective from November 3. The reduction will inject INR 175 billion into the banking system.
The rupee declined to 54.1955 per dollar after the decision, compared to an early high of 53.855. The rupee is likely to find next next downside target level at 55.00. At Monday's close, the pair was worth 54.08.
Courtesy: RTTNews
