RBI Policy Affects Indian Rupee
Following the new RBI policy, the value of the Indian rupee has fallen. This is an article on the impact on the Indian Rupee.
On 3rd April, wednesday, the Rupee had surged by 33 paise to Rs 68.41 against the US dollar Wednesday. In the first bimonthly policy review for the new financial year RBI Reduced interest rates by 0.25%. Earlier the interest rate was 6.25%, due to the new policy it has now become 6%.However the RBIs decision had a severe impact on the Indian Rupee.
4th of April Thursday at the interbank foreign exchange market (forex), the rate of the Rupee fell by 76 paise and it closed at Rs.69.17, against the US Dollar.This resulted in the fall of the value of the Rupee and sovereign bond prices. he RBI says that it has a “neutral” monetary policy. Rising crude oil prices and strengthening of the Dollar against various other currencies overseas has had a tumbling effect on the price of the Rupee.