| Date: |
04-03-2015 |
| Subject: |
Rupee gains 26 paise at 61.66/$ post repo rate cut |
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The Indian rupee opened higher by 26 paise at 61.66 per dollar on Wednesday following repo rate cut announced by Reserve Bank of India (RBI).
The RBI has cut repo rate (the rate at which banks borrow money from the central bank) by 25 basis points to 7.50 percent from 7.75 percent while it kept CRR unchanged at 4 percent.
"Disinflation is evolving along the path set out by the Reserve Bank in January 2014 and, in fact, at a faster pace than earlier envisaged," the RBI said in its statement for the reasons behind the rate cut.
This is the second out of turn 25 basis point-cut after the one in January.
Himanshu Arora of Religare said, "The USD-INR pair is expected to strengthen today amid persistent upside in dollar against a basket of currencies and will continue to react to India's January fiscal deficit surpassing the full year target. However, upside to the dollar may remain capped as German Parliament approves Greek bailout extension. The USD-INR pair is expected to trade in the range of 61.76-62.18/dollar."
The dollar hovered below an 11-year high versus a basket of major currencies, as investors await US economic data and a European Central Bank meeting later this week for fresh direction clues.
Source : moneycontrol.com
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