The rupee fell to 55.65 against the dollar at close after the Reserve Bank of India left key policy rates unchanged.

The domestic unit opened higher at 55.44 against the dollar from previous close of 55.61.

The central bank kept repo rate and CRR unchanged due to “persistently high inflation.”

The rupee has fallen by over 20 per cent in the last one year reflecting the slowing growth and visibility on reforms in Asia’s third largest economy.

Experts have indicated that the Government must push big ticket reforms like FDI in retail, insurance, aviation and pension to get the rupee back to 50-level mark.

Assembly elections in key states next year leaves the Government with a very narrow window to act.

Call rates, G-Secs

The inter bank call rates remained unchanged from previous close of 8.05 per cent.

The 8.15 per cent government security maturing in 2022 declined sharply to Rs 99.35 (yield: 8.24 per cent). It had closed at Rs 100 (yield: 8.14 per cent) on Monday.

satyanarayan.iyer@thehindu.co.in

(This article was published on July 31, 2012)
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