The Sen Times

Rupee slumps 43 paise to close at 96.78 against US dollar post RBI policy decision

Mumbai, Oct 7 (PTI) The rupee slumped 43 paise to close at 96.78 (provisional) against the US dollar on Wednesday, after the Reserve Bank of India raised the key benchmark policy rate by 25 basis points to 5.5 per cent. Market analysts said the RBIs rate hike reflects rising cyclical inflation risks, while the shift in stance to calibrated tightening alongside higher growth and inflation projections highlights the MPCs hawkish approach. At the interbank foreign exchange market, the rupee opened at 96.37 and traded in the range of 96.34-96.84 before eventually settling at 96.78 (provisional), down 43 paise from its