RTTN:Indian Rupee Falls From Near 3-week High Vs Dollar After RBI Rate Cut
Erasing early gains, the Indian rupee dropped against the U.S. dollar in late morning deals on Tuesday after the Reserve Bank of India reduced key interest rates by a quarter point for the second time this year.
The central bank lowered its repo rate to 7.50 percent from 7.75 percent and adjusted the reverse repo rate to 6.50 percent from 6.75 percent.
At the same time, the RBI retained its cash reserve ratio at 4.00 percent. The central bank last slashed the key rates and CRR by 25 basis points in January.
The rupee is now trading at 54.34 against the greenback, losing 0.81 percent from early near 3-week high of 53.905. At Monday's close, the pair was quoted at 54.18.
