RBI Keeps Rate at 5.25% as Rupee Gains but Faces Ceiling
The Reserve Bank of India held rates steady, providing temporary support for the rupee, but resistance levels may cap further appreciation.
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The RBI left its benchmark repo rate unchanged at 5.25% for a fourth consecutive meeting. The decision helped send USD/INR lower to around 95.10 as the rupee found local support.
India attracted $41 billion in foreign inflows, adding to the positive bias for the currency. The central bank’s pause comes amid a global backdrop of elevated interest rates.
Despite the gains, analysts note that the rupee still faces a ceiling, limiting further upside against the dollar. Resistance near current levels may keep USD/INR from extending its decline in the short term.
Source: FXStreet Forex News