On February 7, on the day of the monetary policy announcement of the Reserve Bank of India (RBI), the rupee opened with a gain of 11 paise. Today, the Indian rupee opened at 87.4688 against the US dollar. Whereas it closed at 87.5788 against the dollar on the previous trading day. RBI gave its decision at the interest rate at 10 am today. As expected, the central bank has cut 25 basis points (0.25 per cent) in its policy rates. On 3 February, the Moneycontrol pole conducted between banks and market experts, economists and Treasury heads indicated that the new monetary policy committee meeting with February 4 to 7 under the chairmanship of the new Governor Sanjay Malhotra, the new Monetary Policy Committee, Reserve Bank of India, In the upcoming monetary policy, interest rates can be cut.
The first MPC meat repo rate or benchmark borrowing rate by RBI, led by Malhotra, was reduced by 25 basis points. Now this rate has been reduced from 6.5 percent to 6.25 percent. Amit Pabari, managing director of CR Forex Advisors, said that as long as the lack of cash remains, the rupee will remain under pressure. In addition, CRR cuts are also increasing the pressure on the rupee.
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Currently, adverse conditions are more for the rupee and the favorable conditions are less. With this, the rupee will be seen trading at a high level between 87.20 and 87.70 due to the RBI’s interest rate cuts. The level of 87.20 for the rupee will serve as support.
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