RTTN: Indian Rupee Eases Against US Dollar On Weak Asian Stocks
(RTTNews) - Monday, the Indian rupee declined as the US dollar firmed up against major currencies and Asian stocks fell after the Reserve Bank of India raised rates on Friday for the first time in almost 2 years.
The central bank raised the repo rate by a quarter point to 5% from 4.75%. The reverse repo rate was increased to 3.5% from 3.25%.
Most Asian stocks retreated on concerns surrounding the inflationary outlook and high levels of Greece's sovereign debt ahead of a euro zone summit on March 25-26. The Reserve Bank of India's surprise rate hike last week spurred speculation that other central banks in Asia may step up inflation-fighting efforts.
The Bombay Stock Exchange's Sensitive Index, or Sensex, slid 37.17, or 0.2 percent, to 17,541.06 at noon.
The rupee that rose to 45.32 against the US dollar earlier in the Asian session pulled back and hit as low as 45.5550 around 12:00 am ET. The dollar-rupee pair moved on hold thereafter and is currently trading near Friday's closing quote of 45.5250.
