The one-month NDF was quoting at Rs 62.40
Ends at 61.50/51 a dollar compared to its close of 61.23/24 on Wednesday
But may strengthen later in the day on Fed move to continue stimulus
The government should raise diesel prices by about 9.5% or Rs 5 ($0.08) a litre
Buying comes after RBI cut MSF by 25 bps
Sentiment was cautious ahead of the Federal Reserve's meeting this week
The decision on the LAF repo rate was taken looking at the upside to inflationary pressures from the second quarter of FY14
Policy view from CEO, country head, Barclays India
Raising the term repo limit for banks to 0.5% of net demand & time liabilities will help develop a term repo market
The first and second quarters of 2014 are likely to see another period of extreme volatility
Looking ahead, we expect RBI to continue to recoup forex reserves
The increase in the repo rate will have a direct impact on the cost of funds and it will put pressure on the already-thin operating margins
RBI has its own limitations and a mere tweaking of interest rates does not impact core inflation, such as food inflation
Indian currency ends at near 11-day high of 61.32 to a dollar; it had touched an all-time low of 68.85 on Aug 28
The central bank plans to issue a new policy on foreign exchange loans by December
C Rangarajan says high inflation left RBI with no option but to go for repo rate hike, differs with central bank on its inflation expectations
Banking regulator aims to strengthen banking structure over next few quarters through new entry, branch expansion and new varieties of banks
In a move from the past, the governor shortens the policy document and ushers in changes at the micro level by incorporating retail inflation