RBI maintains status quo; warns volatile oil prices pose risk to inflation

Rupee,Markets,Sensex

Against this backdrop, the RBI's Monetary Policy Committee will announce its latest policy decision on Friday and an interest-rate increase is likely.

"Despite a stronger dollar, crude oil prices continued to remain very elevated, which is putting further pressure on current-account deficit currencies that rely on oil imports, India and Indonesia specifically", said ANZ's Goh.

The rupee slipped to a fresh record low 73.76 per United States dollar in early trade on Thursday, after settling at a record low of 73.34 on Wednesday. The rupee has been depreciating to new lows as against the U.S. dollar along with the global crude prices breached the USD 86 to a barrel mark.

The Indian rupee closed at 73.58 per USA dollar, 24 paise weaker than its previous close of 73.34.

After a weak start, The BSE 30-share barometer plummeted below the 36,000-mark to hit a low of 35,911.82, finally settling 550.51 points, or 1.51 per cent, down at 35,975.63.

SBI in its research report had said RBI should hike the repo rate by at least 25 basis points to control the value of rupee from falling. The MPC also kept the reverse repo rate the same at 6.25%.

CapitalTV: AC approves 10 days physical remand of Shehbaz Sharif
Mr Sifatullah said that the party workers were ready to agitate if the leadership asked them. Earlier, Shahbaz Sharif was taken to the Accountability Court in the strict security.

Jose Mourinho still playing the blame game
They're winless in their last four games in all competitions, with their latest disappointment coming courtesy of a 0-0 draw with Valencia.

Protesters on Capitol steps as Kavanaugh vote draws near
Republican Senator Deb Fischer described Kavanaugh as "one of the most thoughtful, preeminent judges in our nation". Christine Blasey Ford , spoke to ABC News about the investigation into Supreme Court nominee Brett Kavanaugh .

"USD/INR closed at a fresh all time high of 73.58 but off highs of 73.81 on spot", Rising oil prices, rising US interest rates, hawkish US Fed, NBFC stress are hurting the rupee".

And dollar selling by the RBI to support the rupee has put a further squeeze on rupee liquidity.

India's benchmark 10-year sovereign yield fell to 8.04 per cent. Mr. Surendra Hiranandani, Chairman and MD of House of Hiranandani, spoke to Qrius about how sharply the currency and equity market reacted as soon as another rate hike was anticipated to curb inflationary pressures. It has fallen more than 13% since January, making it the worst performing major Asian emerging market currency.

The data in August showed 210,000 jobs created while unemployment was at 3.8%. "This is surprising and contrary to the industry's expectations, which skewed more towards an increase on the back of increasing inflation and depreciation of the rupee", said Anuj Puri, the chairman of ANAROCK Property Consultants.

"The first thing that came to my mind when I saw the decision was that RBI seems to be more confident than the market on the dollar-rupee", Ashish Vaidya, executive director and head of trading at DBS Bank in Mumbai.

THe RBI said the inflation outlook is clouded with several uncertainties.

Related news:

Hot News

isis-killer-beheading-video-story-top Fans think De Gea's actions means he wants Mourinho sacked
Oct 07, 2018 - 18:29
Muto, making his first Premier League start, scored Newcastle's second goal in the 10th minute at Old Trafford . Undoubtedly, that is a trend that needs to stop.

isis-killer-beheading-video-story-top McGregor returns for Nurmagomedov grudge match
Oct 07, 2018 - 18:24
He doesn't want to be around these people. "I am starving for this man's head", he said. "I don't give a s*** right now". Iaquinta did little but survive, and Nurmagomedov was even able to handily beat him on the feet.

isis-killer-beheading-video-story-top These Are All of Brett Kavanaugh's Lies
Oct 07, 2018 - 18:00
Add Supreme Court as an interest to stay up to date on the latest Supreme Court news, video, and analysis from ABC News. He told CNN's Anderson Cooper on Wednesday night that "there is zero chance that she is making up this story".

isis-killer-beheading-video-story-top Wild-card do-over: Severino for Yankees again
Oct 07, 2018 - 16:40
The burly Voit tumbled across the plate, actually making a nifty slide, to just make it home on Didi Gregorius' sacrifice fly. Judge's drive off starter-turned reliever Liam Hendriks got NY going, and the Yankees cruised into the AL Division Series.

isis-killer-beheading-video-story-top Development chances high for tropical disturbance in Gulf
Oct 07, 2018 - 16:26
A storm system in the Caribbean stands a good chance of strengthening as it heads into the Gulf of Mexico, forecasters say. I think the most likely scenario is that a tropical storm, or weak hurricane, will form sometime Sunday or Monday.

isis-killer-beheading-video-story-top Manchester United come from behind to give under-pressure Mourinho victory
Oct 07, 2018 - 15:56
You know, a lot of wickedness. "There is too much wickedness in something that should be lovely ". "I am 55. Newcastle have played against five of the top teams and have not lost by more than one goal to any of them.

isis-killer-beheading-video-story-top Utah toddler puts more than $1,000 in the shredder
Oct 07, 2018 - 12:08
But as they say, it's better late than never! "A few tears, and then a bunch of laughs", said Ben. When the couple was unable to find the envelope they started searching the house.

isis-killer-beheading-video-story-top Labor Dept.: Unemployment, job growth down in September
Oct 07, 2018 - 09:49
This rate, called U-6 by the BLS, has decreased from 8.3 percent a year ago and 9.7 percent two years ago. So far this year, the average number of jobs created each month is 16 percent higher than last year.

isis-killer-beheading-video-story-top Spanish Opera Star Montserrat Caballe Dies At 85
Oct 07, 2018 - 07:38
Caballe's family requested the cause of death not be released, del Moral said, adding that she had been in the hospital since September.

isis-killer-beheading-video-story-top 'Dancing Queen' May says austerity is over - with a 'good' Brexit deal
Oct 07, 2018 - 06:06
He also said that if the country bottled Brexit now, the people will find it hard to forgive. Back them to create jobs and build prosperity.

isis-killer-beheading-video-story-top LG Unveils V40 ThinQ Smartphone With Five Cameras
Oct 07, 2018 - 01:03
The LG V40 ThinQ will run on Android 9 Pie onboard and will reportedly pack 6GB/ 8GB of RAM and up to 256GB of internal storage . The 8 MP camera has a bright f/1.9 aperture and an 80° lens, while the 5 MP camera has a f/2.4 aperture and a 90° lens on top.

isis-killer-beheading-video-story-top Liverpool v Manchester City
Oct 06, 2018 - 22:54
City also have a terrible record at Anfield having lost 12 of their last 17 visits, with their last away victory in 2003. Both sides were in action in the Champions League in midweek and will want three points to go into the worldwide break.

isis-killer-beheading-video-story-top Five Potential Replacements For Jose Mourinho At Manchester United
Oct 06, 2018 - 22:43
The club has failed to respond to questions about the report in today's edition of the Daily Mirror newspaper. Mourinho will be facing a familiar foe in Rafa Benitez who has had plenty of clashes with down the years.

isis-killer-beheading-video-story-top Melania Trump criticized for wearing white pith helmet in Kenya during safari
Oct 06, 2018 - 22:43
And sometimes he listens and sometimes he doesn't. "That's very important. what I'm doing with my initiatives". First lady Melania Trump takes photos with her phone during a safari at Nairobi National Park.

isis-killer-beheading-video-story-top Interpol asks China for information on its missing president
Oct 06, 2018 - 22:36
While Meng is head of the executive committee that oversees Interpol, the agency is run by the secretary general. Neither China's public security ministry nor its foreign ministry have replied to queries about the president.