The Indian rupee moved down against the U.S. dollar in evening deals on Tuesday, after the Reserve Bank of India maintained status quo on monetary policy, as Governor Raghuram Rajan awaits measures to be announced by the government in the union budget.
The Reserve Bank of India left the repo rate at 6.75 percent and the reverse repo rate unchanged at 5.75 percent, in line with economists’ expectations. The cash reserve ratio for banks were also kept unchanged at 4 percent, as expected.
The bank continues to be accommodative even as it leaves the policy rate unchanged in this review, while awaiting further data on the development of inflation, the bank said.
The rupee declined to a 4-day low of 67.985 against the greenback, down from yesterday’s closing value of 67.88. The rupee is seen finding support around the 68.5 zone.
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