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Rupee Edges Lower Against Dollar Ahead of RBI Policy Decision
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CNBC TV18•07-10-2026, 09:30
Rupee Edges Lower Against Dollar Ahead of RBI Policy Decision
- •The Indian rupee opened marginally weaker at 96.45 against the US dollar as investors awaited the Reserve Bank of India policy decision.
- •Markets are divided on whether the central bank will raise the repo rate for the first time in over three years, with a Reuters poll showing mixed expectations.
- •Investors are also closely tracking how the RBI plans to absorb excess liquidity from the banking system using various monetary tools.
Key Questions Answered
The Indian rupee opened marginally weaker at 96.45 against the US dollar on Wednesday, October 7, compared to the previous close of 96.42.
A Reuters poll of 61 economists showed 35 expecting a 25-basis-point rate hike and 26 forecasting no change, while swap markets are pricing in a 25-basis-point increase with some probability of a larger 50-basis-point hike.
The RBI has utilized tools including variable-rate reverse repo auctions, sell-buy foreign exchange swaps, and open-market bond sales to drain surplus funds from the banking system.
