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.
by RTT Staff Writer
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