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Rupee slips after RBI holds rates, USD/INR rebounds

The RBI kept its repo rate at 5.25% and a neutral stance, while USD/INR rebounded from near 94.80 to about 95.18 as oil prices stayed lower.

Reported · Written up by our desk · Major Pairs

The Indian rupee gave back part of its early gains against the US dollar after the Reserve Bank of India left policy unchanged, with USD/INR rebounding from a sharp morning drop near the monthly low around 94.80 to about 95.18.

FXStreet said the RBI kept its repo rate steady at 5.25% for the fourth straight meeting and maintained a neutral monetary policy stance, after June retail CPI came in at 4.4% year-on-year, within the RBI’s 2% to 6% tolerance band.

The central bank warned that the West Asia conflict is still challenging the global economy, keeping crude oil prices, currencies, and financial markets volatile, and it said higher fuel and food prices have shown limited signs of broadening into wider price pressures.

Investors also looked ahead to US data, with attention on the ADP Employment Change report for July and expectations for private payrolls to rise to +65k after +49k previously, which could influence Federal Reserve rate expectations.

Latest closeWTI crude $75.32 ▼6.2%

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