Indian Rupee Rises Against U.S. Dollar As RBI Leaves Key Rates Unchanged
June 07 2017 - 1:51AM
RTTF2
The Indian rupee advanced against the U.S. dollar in afternoon
deals on Wednesday, after the Reserve Bank of India kept its key
repo rate unchanged for the fourth straight meeting, while cutting
the statutory liquidity ratio to grant more liquidity to banks.
At its second bi-monthly monetary policy meeting, policymakers
of the Reserve Bank of India decided to maintain the repo rate at
6.25 percent and the reverse repo rate at 6.00 percent.
The central bank also reduced the SLR of all banks by 50 basis
points to 20 percent from 20.50 percent of their net deposits with
effect from June 24.
The decision of the MPC is consistent with a neutral stance of
monetary policy in consonance with the objective of achieving the
medium-term inflation target, while supporting growth, the bank
said.
Indian markets rose, with the benchmark BSE Sensex rising 64.30
points or 0.21 percent to 31,255, while the broader Nifty index was
up 21 points or 0.22 percent at 9,656.
The rupee rose to 64.31 against the greenback, up by 0.3 percent
from a 6-day low of 64.51 set in morning deals. The next possible
resistance for the rupee is seen around the 63.00 region. The pair
finished Tuesday's trading at 64.40.
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