INSUBCONTINENT EXCLUSIVE:
Mumbai: After a two-day fall, rupee closed at a fresh one-month high of 66.92, surging by 23 paise against the US dollar, even as the RBI
hiked repo rate by 25 basis points
Reserve Bank retained the growth forecast for the current fiscal at 7.4 per cent on hopes of further boost to investments and higher
10-year benchmark bond yield shooting to 7.92 per cent from 7.83 per cent.In a carefully scripted move, the Reserve Bank for the first time
in four-and-a-half-years raised key interest rate by 25 basis points to 6.25 per cent - highlighting concerns over inflationary pressures to
the domestic economy arising from a steep spike in global crude prices and evolving macroeconomic situation.The apex bank revised upwards
the retail inflation range to 4.8-4.9 per cent in the first half of 2018-19, and 4.7 per cent in the second half, while retained the GDP
growth for the financial year 2018-19 at 7.4 per cent.The six-member Monetary Policy Committee (MPC), however, kept its stance neutral,
despite a repo rate increase
Rising international crude prices have raised concerns on the fiscal front for the Indian economy in form of widening trade and fiscal
deficits.Meanwhile, foreign portfolio investors (FPIs) turned net sellers and sold shares worth Rs 157.51 crore yesterday, as per
On the energy front, crude prices regained some lost ground after Venezuela raised the prospect of a halt to some crude exports, but gains
were capped by reports that the US government had asked Saudi Arabia and some other OPEC producers to increase output.Brent crude futures,
close of 67.15 at the interbank foreign exchange (forex) market on fresh dollar selling by exporters and banks.It later strengthened to hit
a fresh intra-day high of 66.90 on the back of easing dollar pressure before ending at 66.92, revealing a strong gain of 23 paise, or 0.34
at 67.0397 and for the euro at 78.6778.The dollar index, which measures the greenback's value against a basket of six major currencies, was
down at 93.56.In the cross currency trade, the rupee fell back against the pound sterling to end at 89.84 per pound from 89.68 and also
retreated against the euro to finish at 78.80 as compared to 78.4 earlier.The local currency, however, maintained its bullish tone against
the Japanese yen and closed at 60.74 per 100 yens from 61.18 on Tuesday
Elsewhere, the euro is trading above the two-week high against the greenback on reports that the European Central Bank will have a live
discussion on exiting the QE program in its upcoming meeting amid fading political uncertainty in Italy.The British pound also strengthened
story has not been edited by TheIndianSubcontinent staff and is auto-generated from a syndicated feed.)
