USD/INR Price News: Indian rupee slumps to six-week lows at 73.90 as RBI holds rates at record lows
|The Reserve Bank of India (RBI) board members announced their decision to keep the benchmark policy rates on hold at record lows amid rising concerns that the second wave of coronavirus pandemic could threaten the nascent economic recovery.
Key takeaways
The RBI kept the repo rate or its key lending rate steady at 4% while the reverse repo rate or its borrowing rate was left unchanged at 3.35%.
The MPC judged that monetary policy should remain accommodative till prospects of sustained recovery are well secured.
The MPC voted unanimously to keep rates steady and retain the accommodative monetary policy stance.
The MPC pledged to buy 1 trillion rupees ($13.5 billion) of bonds this quarter to cap borrowing costs. The debt purchases will start from April 15.
USD/INR sees a 40-pips rally post-RBI
Extending Tuesday’s surge, USD/INR leaped to fresh six-week highs at 73.882 on RBI’s status quo.
The Indian central bank’s commitment to keeping the policy easy, in order to aid the post-pandemic economic recovery, continues to undermine the domestic currency.
At the press time, USD/INR trades at 73.80, adding 0.42% on the day. The cross staged an impressive comeback from Tuesday’s low of 73.20.
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