RBI MPC impact: Rupee slips below 90 versus dollar after 25 bps repo rate cut. Here's why
[hfe_template id='11223']
[ad_1]
The Indian rupee declined 18 paise to breach the 90 mark on Friday following the Reserve Bank of India's (RBI) decision to unanimously cut the repo rate by 25 bps to 5.25%. Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP, attributed the slide in the rupee to the rate cut, which triggered a fall in Indian rupee yields, causing a selloff after making a day's high of 89.69 against the USD. He expects the rupee to be in the range of 89.75 to 90.25 for the rest of the day with dips to be bought. "RBI was present in the morning but was conspicuous by its absence after the rate cut. The RBI was very dovish in its comments expecting inflation to be down and with OMO and FX swap it is overall rupee negative," Bhansali said. The RBI today announced a Rs 1 lakh crore Open Market Operation (OMO) to boost liquidity along with a 3-year Dollar-Rupee buy-sell swap. Live Events Notwithstanding...