MUMBAI: The Indian rupee fell to a new five-week low on Tuesday after the RBI kept interest rates unchanged, shifting the pressure on the government to take additional steps to revive growth and contain the fiscal deficit.
The disappointment over the Reserve Bank of India decision to keep the repo rate on hold at 8 percent was compounded after the central bank signalled no further policy easing would take place until the January-March quarter of next year.
The central bank also cut its baseline economic growth forecast for the fiscal year to 5.8 percent from 6.5 percent, while raising its estimate for wholesale price inflation to 7.5 percent from 7 percent.
