RBI policy spooks forex market, rupee breaches below 74 mark for the first time
Forex market didn’t like the Reserve Bank of India’s move to keep repo rate unchanged at 6.50 per cent. The local currency on Friday hit 74-mark against the dollar for the first time soon after the monetary policy outcome.
The six-member monetary policy committee of the Reserve Bank of India on Friday refrained from increasing the repo rate, the short-term lending rate. The policy rate stands at 6.5 per cent.
The policy-setting committee headed by Governor Urjit Patel opted to take a pause after hiking the rates in its last two successive policy meetings. The outcome was in contrast to a poll, where a majority of 25 economists and analysts had expected the otherwise.