ET:Rupee down post RBI policy; political instability aids
The Indian Rupee was down to 54.25/26, recovering sharply from a near three-week low of 53.9050 hit in early trade and stronger compared with its close of 54.1650/1750 on Monday, after a key ally withdraws support from the ruling coalition.
A key regional ally pulls out of the ruling coalition on Tuesday in protest against the government's position on a US-backing United Nations resolution on war crimes carried out during Sri Lanka's civil war.
Traders say the RBI's policy statement on there being limited further scope for easing also weighing on market sentiment, despite a repo rate cut of 25 basis points which traders say was mostly discounted.
Domestic shares trading down 1.1 per cent after dropping as much as 1.8 per cent immediately after the withdrawal of support.
