Mumbai, India (BBN) – The rupee weakened to 64.46 as traders adopted a wait-and-watch approach ahead of RBI monetary policy decision.
The Monetary Policy Committee headed by RBI Governor Urjit Patel started its two-day deliberations today amid several experts saying that the central bank is unlikely to lower the key interest rate and will stay focused on controlling inflation, reports The Hindu Business Line.
The Reserve Bank of India’s monetary policy committee is likely to keep the policy repo rate on hold in the upcoming monetary policy review on account of various factors.
However, dollar selling by banks and exporters and weakening of dollar against some other currencies overseas restricted the rupee’s losses.
The domestic unit opened strong by 7 paisa at 64.30 at the Interbank Foreign Exchange market today. It hovered in a range of 64.46 and 64.22 before ending at 64.38, down 1 paisa at 5 pm local time.
Yesterday, the rupee had rebounded by 9 paisa to end at 64.37 against the US dollar in a highly volatile trade on fresh selling of the greenback and also emboldened by encouraging Q2 GDP numbers and monthly manufacturing data.
Meanwhile, the 30-share BSE index Sensex ended lower by 67.28 points or 0.2 per cent at 32,802.44.