As the US dollar index declining significantly over the past week, the rupee is strengthening against the global benchmark currency.
On Monday, rupee’s opening price against the US dollar was 80.52, down from Friday’s closing price of 81.80.
For the record, the Indian rupee has been declining during the previous few weeks to achieve brand-new all-time lows, with the exception of the most recent appreciation in November.
The rupee broke through the 83 level mark for the first time ever in October. The rupee has declined by about 8–9% so far this year.
Indian stock indices Sensex and Nifty traded largely steady at 61,762.64 points and 18,362.75 points this morning, respectively.
Retail inflation in India increased to 7.41% in September, above the required range of 2–6% for a third straight quarter.
The RBI is regarded to have failed in managing price increases under the flexible inflation targeting framework implemented in 2016 if the CPI-based inflation goes outside the 2–6% range for three consecutive quarters.
In light of this, the Reserve Bank of India’s Monetary Policy Committee (MPC) met out of turn on November 3 to debate and produce a report that would be forwarded to the national government for failing to sustain the inflation mandate.
(inputs from ANI)