News Column

Indian Rupee Steady Against US Dollar After RBI Decision

August 4, 2014

NEW DELHI (Alliance News) - The Indian rupee held steady against the US dollar in late morning deals on Tuesday, after the Reserve Bank of India kept key policy rates intact and lowered the statutory liquidity ratio to raise liquidity.

The repo rate, the rate at which the Reserve Bank of India lends to banks, was maintained at 8.00%. The RBI also retained its reverse repo rate at 7.00% and cash reserve ratio at 4%.

At the same time, the RBI reduced the statutory liquidity ratio, the proportion of deposits that banks should invest in bonds, by 50 basis points to 22%, with effect from the fortnight beginning August 9.

The rupee was trading at 60.82 per dollar, following a 4-day high of 60.78 hit in early deals. At Monday's close, the pair was worth 60.94.

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Source: Alliance News

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