Rupee trades flat against US dollar ahead of RBI policy outcome

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Rupee trades flat against US dollar ahead of RBI policy outcome

Mumbai: Indian rupee was trading little changed against US dollar ahead of Reserve Bank of India’s bi-monthly policy decision due after 2.30 pm on Wednesday. At 9.15 am, the rupee was trading at 68.57 a dollar, down 0.03% from its previous close of 68.55. The currency opened at 68.59 a dollar. RBI monetary policy committee may raise policy rates by 25 basis points on Wednesday but is expected to maintain its neutral policy stance given the volatility in crude oil and food prices, economists say.

Of the 15 economists surveyed by Mint, 12 expect RBI to raise its repo rate, the rate at which it lends to commercial banks, to 6.5%. Only three economists expect RBI to keep rates unchanged at 6.25%. The 10-year bond yield stood at 7.756%, from its Tuesday’s close of 7.773%. Bond yields and prices move in opposite directions.

Benchmark Sensex Index rose 0.14% or 51.73 points to 37,658.31. Since January, it has gained 10.42%.

Rupee trades flat against US dollar ahead of RBI policy outcome

So far this year, the rupee has weakened 6.9% against the US dollar, while foreign investors have sold $545.30 million and $6.11 billion in equity and debt markets, respectively.

Asian currencies were trading mixed. China Offshore was down 0.32%, Indonesian rupiah fell 0.17%. However, Thai Baht and Taiwan dollar were up 0.06% each.

The dollar index, which measures the US currency’s strength against major currencies, was trading at 94.581, up 0.03% from its previous close of 94.554.

source: livemint