Rupee near day's low, trades at 69.48 per dollar

The Indian rupee is trading near day's low at 69.48 per dollar against previous close 69.27.

On May 6 the Indian currency ended marginally lower at 69.29 against US dollar after the Reserve Bank of India cut the key interest rates by 0.25 basis points to a nine-year low of 5.75 percent and also changed its monetary policy stance to accommodative.

Rupee consolidated in a narrow range ahead of the important RBI policy statement that was released yesterday. In line with expectation the RBI cuts repo rates by 25bps and changed its stance to accommodative. The MPC said a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern, said Motilal Oswal.

The central bank lowered its growth forecast to 7% from 7.2% for FY20. It also lowered its inflation forecast to 3-3.1% for first half of 2019-20 and to 3.4-3.7% for second half of 2019-20. Overall the commentary was dovish but reaction on the rupee was quite muted. Today, USD-INR pair is expected to quote in the range of 69.20 and 69.90, it added.