Indian rupee has extended losses and trading around 71 per dollar. It is trading lower by 50 paise at 70.96 per dollar versus previous close 70.46.
Rupee broadly moved in a range of 70.30 and 70.80 levels ahead of the important RBI policy statement that was released yesterday. The RBI in its policy meeting decided to hold rates unchanged but at the same time cut SLR rate by 25bps each quarter until it reaches 18 percent of deposits.
In regards to inflation and growth forecast the central bank trimmed in price growth forecast to 2.7-3.2 percent by March-end from its prior view of 3.9-4.5 percent. And on the contrary maintained its growth forecast for FY2018-19 at 7.4 percent despite a disappointing growth number in the last quarter. Today, USD-INR pair is expected to quote in the range of 70.30 and 71.20, it added.
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