Indian Rupee Falls Against U.S. Dollar After RBI Decision

2018-02-07 08:29

The Indian rupee trimmed its early gains against the U.S. dollar in evening deals on Wednesday, after India's central bank kept its key interest rates unchanged, as expected. At the sixth bi-monthly monetary policy session, the Monetary Policy Committee of the Reserve Bank of India decided to maintain the repo rate at 6.00 percent and the reverse repo rate at 5.75 percent. The bank had lowered the rate by 25 basis points at its meeting in August 2017. Indian shares also fell, as global sentiment changed from unbridled optimism to skepticism and the RBI warned of higher government spending feeding into inflation after keeping interest rates unchanged. The benchmark BSE Sensex gave up earlier gains to end the session down 113.23 points or 0.33 percent at 34,082.71. The broader Nifty index dropped 21.55 points or 0.21 percent to 10,476.70. The rupee dropped to 64.36 versus the greenback, off its early 2-day high of 64.11. If the rupee falls further, it may find support around the 66.00 mark.