ET:Rupee extends losses post RBI policy; hawkish tone hurts
The rupee continues to trade weaker at 53.97/98 versus its previous close of 53.81/82 after the RBI cut its key policy rate by 25 basis points, in line with market expectations but maintains its hawkish stance.
Traders say hopes of more aggressive rate cuts going ahead have reduced following the policy statement.
RBI cut its benchmark interest rate by 25 basis points on Friday for the third time since January, as expected, as growth slows and inflation ebbs, but said there is little room to ease monetary policy further, disappointing markets.
The rupee is expected to hold in a 53.85 to 54.09 range during the rest of the session.
