LM:Rupee trades higher at 62.94 per dollar after RBI policy
Mumbai: The rupee rose against the US dollar on Tuesday after the Reserve Bank of India (RBI) unexpectedly hiked its key rate in its third quarter monetary policy review by a quarter of a percentage point.
At 11.35am, the domestic currency was trading at 62.94 per dollar, up 0.25%, from the previous close of 63.10. Earlier, the unit had opened at 63.18 per dollar.
The yield on India’s 10-year benchmark bond is trading at 8.751% as compared with its previous close of 8.76%.
Stocks fell, with the 30-share bellwether BSE Sensex was trading at 20,693.18 points, down 0.08%, from previous close.
The RBI on Tuesday hiked its key lending rate by a quarter of a percentage point, continuing its fight against inflation in Asia’s third-largest economy.
RBI hiked the repo rate, at which it lends short-term funds to banks, to 8%. The apex bank retained the cash reserve ratio (CRR), or the amount of deposits banks needs to park with the central bank and on which they earn no interest, at 4%.
