USD/INR closed at 71.64 against its open at 71.92. Dollar/rupee slips after the outcome of the Reserve Bank of India's Board meeting later today.
The Reserve Bank of India’s 18 board members are meeting today and may discuss key issues, including easing rules for weak banks, providing liquidity to non bank finance companies and framing a new capital framework for RBI. The RBI board comprises 18 members, of which five are from the central bank, two are government officials, four represent the regional RBI board and seven are independent directors appointed by the government. The crucial RBI board meeting may alter the course of relations between the government and the RBI. There is considerable nervousness in policy circles as well as the markets, both in India and abroad, as to how the curtain comes down on this unprecedented confrontation between RBI and the union government.
Meanwhile, crude oil prices rose during Asian trades Monday as investors expect members of OPEC to cut oil supply in December.
Brent crude oil futures for delivery in December traded 0.99% higher at $67.42 per barrel on Monday.
Meanwhile, local stocks opened higher Monday on steady buying by overseas fund amid optimism that the Reserve Bank of India (RBI) would announce measures to support banking sector during its meeting scheduled later today.
According to the media reports, the government wants RBI to take much more powerful role of exerting pressure for easier lending change. The government also want the RBI governor to accede to a range of demands that could help to boost demand.
NSE Nifty closed 0.76 percent higher at 10,763.40, while the BSE Sensex rose 0.9 percent to close at 35,774.88.