INR likely to maintain caution ahead of RBI

The Indian rupee is expected to stay cautious in opening trades on Wednesday with all eyes on RBI policy for further guidance on growth and tariff impacts even as the central bank is largely expected to key rates unchanged after frontloaded rate cuts in its previous meeting. Pessimistic global cues from ongoing tiff between US and India and their potential impact on economy are seen weighing on domestic equities and currency alike. Yesterday rupee hit a new record low of Rs 87.79 against the dollar as per RBI reference rate as risk-off sentiment deepened after US President Donald Trump renewed his threat to raise tariffs on Indian goods over New Delhi's continued purchases of Russian oil. Indian shares also ended Tuesday's session lower. The benchmark BSE Sensex ended the session down 308.47 points, or 0.38 percent, at 80,710.25, after hitting a low of 80,554 earlier. The broader NSE Nifty index hit a low of 24,590 before recouping some of its loss to close at 24,649.55, down 73.20 points, or 0.30 percent, from its previous close. In the spot market, rupee refreshed February low of 87.95 during intraday moves before paring some loses to settle for the day at 87.77, down 11 paise from previous close. On the NSE, USDINR futures climbed 0.16% at 87.87.

Powered by Capital Market - Live News