Rupee halts 4-day rally on RBI policy eve, down 7 paise

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Financial News :

Snapping its four-day winning run, the rupee on Tuesday turned weaker by 7 paise to end at 64.43 against the US dollar amid caution ahead of the outcome of the RBI’s bi-monthly policy review meet on Wednesday.

Fresh dollar purchases by state-run-banks on behalf of corporate clients and a retreat in local equities after record-setting run also weighed on the forex trade.

The rupee had gained 30 paise over the last four sessions against the American currency.

Meanwhile, geopolitical tensions took on more significance following the shock move by four US Arab allies led by Saudi Arabia to isolate Qatar.

Expectations for an interest rate cut by the apex bank in its Wednesday’s policy meet to rejuvenate the sagging economy against the backdrop of softening inflations somewhat cushioned the rupee sentiment, a forex dealer said.

The domestic unit opened firm at 64.32 from overnight closing level of 64.36 at the Interbank Foreign Exchange (Forex) Market and advanced further to 64.31 due to initial dollar selling.

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