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Muted Reaction As RBI Holds Rates Steady

INR

There has been a muted reaction in the Rupee after the RBI holds rates steady at 6.50%, as it waits for more clarity on how persistent the latest uptick in inflation will be. CPI data next week is forecasted to show inflation back above the target range.

  • USD/INR is a touch firmer than opening levels and sits at touch off session highs at 82.84/85. In the fixed income space 10 Year Bond Yield dropped 2bp to 7.16%.
  • In the equity space the Sensex and the Nifty pared early losses to sit a touch lower than yesterday's closing levels.

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