Demand for the US currency from importers amid firming crude oil prices affects rupee
The rupee commenced higher at 54.10 against the dollar from yesterday's close of 54.14 at the Forex market
Gains on the back of sustained selling of dollars by exporters amid continued capital inflows into equities
In its annual monetary policy, RBI has indicated important changes that could be good for customers in the long run
Forex dealers said a weak dollar overseas and firm domestic equities also helped the rupee to recover
Picks up on good dollar demand from banks and importers on the back of higher dollar in overseas
Subbarao says CRR could be used for infusing liquidity
The currency declines 0.5% to 54.19 a dollar, the biggest drop since April 4
However, recovery in local equities and sustained capital inflows limited the fall to some extent
Fresh selling of US currency by exporters amid sustained foreign capital inflows helps rupee
As RBI has laid great emphasis on incoming data, markets will remain very sensitive to the same and therefore volatile
The move is part of the monetary authority's financial inclusion drive, which also saw the bank extending the lead bank scheme to all the urban centres
'Monetary policy will also have to remain alert to risks on account of the CAD and its financing, which could warrant a swift reversal of the policy stance'
Bond yields increase due to hawkish guidance of the central bank
While RBI said there was limited headroom for further rate cuts, ECB did not rule out the possibility of further lowering of rates
The policy statement has provided a clear guidance that the recent assessment of growth-inflation dynamics provides little scope to RBI for further monetary expansion
In 2012-13, the central bank reduced the repo rate by 50 basis points and CRR by 75 basis points