(RTTNews) - Monday, the Indian rupee showed weakness against its US counterpart despite a rally in domestic stocks as traders are cautious ahead of the Reserve Bank of India's policy meeting on Tuesday and the FOMC meeting on Wednesday.
The rupee that closed last week's deals at 45.63 against the US dollar has lost almost 7 paisa today to reach as low as 45.6950 around 6:40 am ET. On the downside, 45.8660 is seen as the next likely target level for the Indian rupee. The greenback-rupee pair is presently trading at 45.69.
Shrugging off negative global cues and rate hike worries ahead of the central bank meeting tomorrow, the Indian market ended Monday's session notably higher, with banking, consumer durable, capital goods, realty and auto stocks leading the gainers.
After a flat opening, the benchmark BSE Sensex rose to a high of 19,195 by mid-session before paring some gains and ending up 144 points or 0.76% at 19,151. Likewise, the 50-share Nifty has given up some of its early gains to finish 47 points or 0.82% higher at 5,743.
The predominant objective of monetary policy will be to curb inflation, the Reserve Bank of India said today.
"Since persistent high inflation could endanger the growth objective and also amplify risks to inclusive growth, containing inflation will have to be the predominant objective of monetary policy in the near-term," the central bank said in its Macroeconomic and Monetary Developments for the third quarter.
