Rupee breaches 60/dollar after RBI policy

This was the first time after July 15 that rupee crossed the level

The rupee again breached the Rs 60 per dollar mark in afternoon trades.

This is the first time the rupee breached the Rs 60 per dollar mark after the Reserve Bank of India (RBI) announced liquidity tightening measures on July 15.

At 1:55 pm, the rupee was quoting at Rs 60.07 compared with previous close of Rs 59.41 per dollar.

Falls accelerated in the afternoon session after the RBI left interest rates unchanged and said it will roll back those liquidity tightening measures when stability returns to the currency market.

“The street was expecting some concrete measures from the Reserve Bank of India (RBI) in the monetary policy. Still, that did not come and there is also month-end dollar demand by importers so the rupee weakened,” said a currency dealer by a state-run bank.

However, according to currency dealers state run banks will intervene in the market to arrest further fall.

Earlier this month the rupee had touched an all-time low of Rs 61.22. However, the rupee had recovered after RBI announced liquidity tightening measures.