inr-bank-notes - INR

Market players are cautious with the domestic currency INR ahead of RBI’s first interest rate decision of the year. At the interbank market, the value of Rupee depreciated by 8 paise settling down -0.12% at 71.18 against the US dollar. However, the USD/INR exchange rate was seen trading on Wednesday within a trading range of 71.05 and 71.24.

Today’s RBI interest rate decision can produce a whipsaw because the disappointments over the Union budget will weigh in on the central bank policy stance. The increased fiscal deficit and increased level of inflation will curb the Reserve Bank of India ability to change its interest rate policy. In India, the Repo rate was brought down by the RBI to 5.15%.

While the benchmark interest rate will keep on hold, according to a Reuters poll, the MPCs are expected to lower interest rates to 4.90% in the October – December meeting.

In other news, risk sentiment has continued to improve considerably boosting major stock indices in the US near the all-time highs.

The dollar index, which gauges the greenback’s strength against a basket of major currencies, touched a 9 week high and settled up 0.33% at 97.26.

Elsewhere, foreign institutional investors (FIIS) were net buyers of shares in the local equity market worth Rs 248.94 crore; according to the National Stock Exchange of India data published at the end of Wednesday’s trading session. At the same time, Domestic Institutional Investors (DIIs) were net buyers of equities worth Rs 262.75 crore.

The domestic benchmark equity index NIFTY 50 struck a 3 consecutive day rally and settled up 0.91% at 12,089.15 on Wednesday. However, during early Asia trading hours on Thursday, Indian shares were up an additional 0.51% at 12,150.50.

The Indian 10-year government bond yield was seen quoted at 6.48% in morning trade compared with its previous close of 6.51%.

Currently, at the interbank market, one US dollar buys 71.16 Rupees, down -0.03% as of 8:00 AM UTC. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.