Indian Rupee Climbs Against U.S. Dollar After RBI Holds Key Rate Steady
December 05 2018 - 12:32AM
RTTF2
The Indian rupee drifted higher against the U.S. dollar in
evening deals on Wednesday, after India's central bank kept its key
benchmark rates unchanged, while slashing inflation forecast for
the second half of this year.
The Monetary Policy Committee of the Reserve Bank of India
maintained the repo rate at 6.50 percent. The reverse repo rate was
retained at 6.25 percent. The decision was in line with economists'
expectations.
The decision was consistent with the stance of calibrated
tightening of monetary policy aimed to achieve the medium-term
target for headline inflation of 4 percent on a durable basis.
The RBI projected inflation at 2.7-3.2 percent for the second
half of the fiscal year 2019 and 3.8-4.2 percent for the first half
of fiscal year 2020, "with risks tilted to the upside".
The rupee appreciated 0.6 percent to a session's high of 70.26
against the greenback, after falling to a weekly low of 70.66 in
the morning session. The pair closed Tuesday's deals at 70.55. Next
key resistance for the rupee is seen around the 68.00 level.
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