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Rupee Drops 22 Paise To 96.57 Against US Dollar Following RBI Rate Hike
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News18•07-10-2026, 12:15
Rupee Drops 22 Paise To 96.57 Against US Dollar Following RBI Rate Hike
- •The rupee depreciated 22 paise to 96.57 against the US dollar in early trade after the Reserve Bank of India raised the repo rate by 25 basis points to 5.5 per cent.
- •Market analysts note that the rate hike and shift to calibrated tightening reflect rising cyclical inflation risks and a hawkish approach by the Monetary Policy Committee.
- •The dollar index traded higher at 102.09, while Brent crude futures rose 0.97 per cent to USD 101.56 per barrel.
- •Domestic equities saw declines in early trade, with the Sensex trading 149.14 points lower and the Nifty down 93.45 points.
- •Foreign Institutional Investors offloaded equities worth Rs 2,961.30 crore on a net basis on Tuesday.
Key Questions Answered
The rupee depreciated after the Reserve Bank of India raised the key benchmark policy rate by 25 basis points to 5.5 per cent.
The Reserve Bank of India raised its key benchmark policy repo rate by 25 basis points to 5.5 per cent.
Analysts noted that the shift to calibrated tightening and upward revisions to growth and inflation forecasts highlight a hawkish approach by the MPC to address rising cyclical inflation risks.
