News Column

Indian Rupee Slides To Near 3-week Low Against US Dollar

June 3, 2014

NEW DELHI (Alliance News) - The Indian rupee moved down against the US dollar in evening deals on Tuesday on suspected intervention by the Reserve Bank of India.

The RBI reportedly intervened by purchasing dollars through state-run banks to stem currency gains.

Further, the Reserve Bank of India left its key interest rates unchanged today as inflation is expected to slow with the currency gaining strength.

The repo and reverse repo rates were maintained at 8.00% and 7.00%,respectively. Meanwhile, the RBI reduced the statutory liquidity ratio, the proportion of deposits that banks should invest in bonds, by 50 basis points to 22.50% from 23.0%, with effect from June 14, 2014.

The rupee hit 59.43 against the greenback, its lowest since May 16. On the downside, 60.00 is seen as next support level for the rupee. The pair was worth 59.17 at yesterday's close.

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Source: Alliance News

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