Indian Rupee Little Changed After RBI Keeps Key Rates Unchanged
August 08 2024 - 2:10AM
RTTF2
The Indian rupee changed little against the U.S. dollar in the
late Asian session on Thursday, after India's central bank
maintained its interest rates for the ninth consecutive
session.
The Monetary Policy Committee of the Reserve Bank of India (RBI)
led by Governor Shaktikanta Das, voted 4-2 to keep the policy repo
rate unchanged at 6.50 percent.
The decision came in line with expectations. Ashima Goyal and
Jayanth Varma voted to reduce the policy repo rate by 25 basis
points.
Recently, the rupee depreciated to a record low of 84.1370
against the greenback amid concerns over an escalating Middle East
conflict and fears that the U.S. economy may be heading for a
recession.
However, the RBI may intervene the fx market to stabilize the
local currency, if the currency declines further.
Against the U.S. dollar, the rupee fell slightly to 83.970 from
an early high of 83.9020. At yesterday's close, the rupee was
trading at 83.8650 against the greenback.
If the rupee extends its downtrend, it is likely to find support
around the 84.00 region.
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