Re bounces back from 5-week lows

The rupee recovered from a five-week low hit on Tuesday to end the session with mild gains on the back of a falling dollar, but the outlook for the local currency remains weak after RBI kept interest rates unchanged.

The disappointment over RBI’s decision to keep the repo rate on hold at 8 per cent was compounded after the central bank signalled no further policy easing would take place until the January-March quarter of next year.

The focus will now remain on the government to continue its commitment with tangible steps towards reviving growth and shoring up the country’s finances, analysts said.

The partially convertible rupee ended at 53.96/97 per dollar, higher than its previous close of 54.08/09. It fell to a session low of 54.195, its lowest since September 21.

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