In anticipation of the Reserve Bank of India's announcement of its monetary policy and decision on interest rates, the Indian rupee depreciated by paise against the US dollar on Thursday. The local rupee was under pressure due to weak Asian currencies. Against the previous closing of 82.55, the rupee started the day at 82.59 to the dollar.
The key repo rate, now at 6.50%, is projected to remain unchanged by the RBI. Investor attention will be focused on comments made by RBI Governor Shaktikanta Das regarding the direction of interest rates and inflation.
Against the US dollar, the rupee closed the day on Wednesday 5 paise higher at 82.55 thanks to increased foreign money inflows and better sentiment.
International Markets; Concerns about China's economic future caused the offshore Chinese yuan to fall below 7.1550 to the dollar in Asian markets, its lowest level since November of last year. The increase in US yields following a surprise rate hike by the Bank of Canada (BoC) put pressure on Asian currencies.
Concerns about demand in the face of a worldwide economic downturn caused crude oil prices to trade lower.While US West Texas Intermediate crude futures dipped 0.08% to $72.47 per barrel, Brent crude futures dropped 0.10% to $76.87 per barrel.
Stock Markets: On the domestic front, the pre-opening session saw the key Indian equities indices, the Sensex and Nifty, trading flat to down. According to exchange data, foreign institutional investors (FII) purchased Indian shares on Wednesday worth Rs. 1,382.57 crore, while domestic institutional investors (DI) bought shares for Rs. 392.30 crore.
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