Rupee nears record low despite RBI rate hike
The Indian rupee fell to a five-month low near its record level despite a 25 basis point rate hike by the Reserve Bank of India. Traders felt the policy lacked sufficient hawkishness. Governor Sanjay Malhotra described short-term market behavior as irrational.
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India's rupee fell to a five-month low of 96.8450 per dollar on Wednesday morning, nearing its record low despite an interest rate hike. The central bank raised its repo rate by 25 basis points to 5.5%, marking the first increase in nearly four years. Traders expected a more aggressive monetary response to support the Asian currency against persistent capital outflows and elevated global bond yields.
