USD/INR closed at 69.16 against its opening at 68.53. USD/INR ends up on FPI Outflow From local debt after Reserve Bank of India's policy statement release Thursday as two out of six RBI-MPC members voted for keeping rates unchanged as against a unanimous vote. Market expected a dovish stance, while two members voted to keep rates unchanged, missing market expectation.
The Reserve Bank of India Monetary Policy Committee reduced repo rate by 25 basis points to 6% from 6.25% earlier. The apex bank panel reduced the key interest rate on expectation of benign inflation and subdued global economic growth outlook.The reverse repo rate stands adjusted to 5.75%, and the marginal standing facility rate and the bank rate has been kept 6.25%. The bi-monthly meet under RBI Governor Shaktikanta Das saw the six-member MPC panel voting 4:2 in favour of the rate cut. However, all the members agreed on changing the policy stance to neutral. The central bank has cut its estimates on headline inflation for the next year.
Japan and the United States are likely to hold their first round of trade talks in Washington on April 15-16, a Japanese government source with direct knowledge of the matter told.U.S. President Donald Trump has made clear he is unhappy with Japan’s $69 billion trade surplus with the United States - nearly two-thirds of it from auto exports - and wants a two-way agreement to address it.Japanese government officials are increasingly worried that Trump will demand a reduction in the number of Japanese auto imports to lower the trade deficit.They are also concerned that Trump could impose steep import tariffs on autos and auto parts, which would deal a big blow to the export-reliant economy.
The dollar index, which tracks the movement of the greenback against a basket of six major currencies, traded at 97.20 Thursday late as compared to 97.09 at opening of Indian market on thursday.
The greenback remained little changed against other major currencies after mixed economic data released on Wednesday. However, improved risk appetite of investors on US-China trade optimism will keep the price in check.
Crude oil futures trading down after the US crude oil inventories release on Wednesday. Also, Brent couldn't breach the $70 a barrel level as it is the strong psychological level.Crude oil inventories release by Energy Information Administration increased to 7.238 million compared to 2.800 million of it previous. Brent futures for June delivery traded 0.13% up at $69.40 a barrel on Thursday.
Sensex provisionally ends 168 points lower with 17 components in the red.