RTTN:Indian Rupee Off 4-month High Vs. U.S. Dollar As RBI Holds Repo Rate
(RTTNews) - The Indian rupee erased early gains against the U.S. dollar in late morning deals on Monday after the Reserve bank of India retained its key interest rate as expected on inflation fears.
The RBI left the repo rate unchanged at 8 percent and the reverse repo at 7 percent, but the bank unexpectedly reduced cash reserve ratio to 4.50 percent from 4.75 percent.
The bank earlier reduced the ratio in January and March this year. Today's reduction will inject INR 170 billion into the banking system.
The bank said headline WPI inflation remained sticky at around 7.5 percent throughout the current financial year so far.
The rupee is now trading at 53.8325 per dollar, reversing from a 4-month high of 53.63 hit in early deals. The pair ended Friday's trading at 54.30.
