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Rupee Slumps To 2-Month Low Of 96.57 Against US Dollar Following RBI Rate Hike
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News18•07-10-2026, 11:29
Rupee Slumps To 2-Month Low Of 96.57 Against US Dollar Following RBI Rate Hike
- •The Indian rupee dropped to a two-month low of 96.57 against the US dollar following the Reserve Bank of India's decision to raise the policy repo rate.
- •The RBI Monetary Policy Committee unanimously voted to increase the repo rate by 25 basis points to 5.50% and shifted its stance to calibrated tightening.
- •Governor Sanjay Malhotra indicated that rate cuts are off the table in the near term, with future actions depending on economic data.
- •Despite higher domestic interest rates meant to attract foreign investment, the currency was pressured by dollar demand and global market cues.
Key Questions Answered
The Indian rupee fell to a two-month low of 96.57 against the US dollar after the Reserve Bank of India raised the policy repo rate by 25 basis points to 5.50%. The currency's movement was also impacted by strong demand for the US dollar and broader global market cues.
The RBI Monetary Policy Committee is headed by Governor Sanjay Malhotra.
The Reserve Bank of India changed its stance to calibrated tightening, indicating that rate cuts are currently off the table in the near term. Future policy actions will either be a rate hike or a pause based on incoming economic data and the outlook.
