The Indian rupee fell sharply against the U.S. dollar on Tuesday after the Reserve Bank of India decided to leave its key rates unchanged, as widely expected.
The central bank retained the repo rate at 8.00 percent and the reverse repo at 7.00 percent. The bank also kept cash reserve ratio unchanged at 4.75 percent.
"In the current circumstances, lowering policy rates will only aggravate inflationary impulses without necessarily stimulating growth," it said.
The rupee fell to a 5-day low of 55.745 against the greenback and if the rupee breaks further, it will target 56.00 level. The pair finished Monday's deals at 55.425.
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Forex News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.