RBI Holds Fire as Rupee Sees Brief Reprieve on Crude Price Slump

The Indian rupee saw some relief after a sharp fall in Brent crude prices below $80 per barrel, and as expected, the Reserve Bank of India (RBI) kept its interest rates steady at 5.25 percent and maintained its 'neutral' stance.

Although the rupee slipped back to its Rs 95 per dollar level, it had traded higher on August 5 after the RBI's review earlier in the day. The local currency was trading at Rs 95.08 per dollar, against Rs 95.38 per dollar in the previous session.

The RBI reduced its fiscal year 2027 inflation forecast to 5 percent from 5.1 percent earlier, while raising the FY27 GDP forecast to 6.7 percent from 6.6 percent previously.