Currency Buzz: INR tanks to four-month low afrer RBI raises rates for first time since Feb-23

Indian Rupee slumped to a four-month low against US dollar today after local stocks came under pressure following first interest rate hike by Reserve Bank of India (RBI) since February 2023. RBI raised the key Repo Rate by 25 bps to 5.5% and moved its stance to ?calibrated tightening? from ?neutral?. This increase in borrowing costs, clubbed with a cautious outlook on growth weighed on the local currency. INR has lost 40 paise and quotes at 96.75 per US dollar right now. On NSE, USD/INR futures are down 0.50% at 97.08.

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