Erasing early gains, the Indian rupee dropped against the U.S. dollar in late morning deals on Tuesday after the Reserve Bank of India reduced key interest rates by a quarter point for the second time this year.
The central bank lowered its repo rate to 7.50 percent from 7.75 percent and adjusted the reverse repo rate to 6.50 percent from 6.75 percent.
At the same time, the RBI retained its cash reserve ratio at 4.00 percent. The central bank last slashed the key rates and CRR by 25 basis points in January.
The rupee is now trading at 54.34 against the greenback, losing 0.81 percent from early near 3-week high of 53.905. At Monday's close, the pair was quoted at 54.18.
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Forex News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.