 "The softening of crude prices will bring down the core inflation too in the coming months as the lower fuel price will feed in")
On October 5, when the Reserve Bank of India (RBI) announced its last bi-monthly monetary policy after a three-day meeting of its monetary policy committee (MPC), the rupee touched a low of 74.22 to a dollar, before closing at 73.77. Within a week, the local currency lost even further — 74.48 to a dollar. Last week, it ended at 69.60.
The price of crude has dropped 30 per cent since October 5 — from $84.16 a gallon to $58.80, its one-year low.
The yield on 10-year paper which closed at 8.04 per cent on October 5 (after a high of 8.25 per
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