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2019.12.0506:19:00UTC+00Indian Rupee Retreats From 1-week High Against U.S. Dollar After RBI Decision

The Indian rupee pulled back from its early high against the U.S. dollar in morning deals on Thursday, after the Reserve Bank of India maintained its interest rates, saying that it is appropriate to pause for time being.

The Monetary Policy Committee of the Reserve Bank of India, headed by Shaktikanta Das, unanimously decided to leave the repo rate unchanged at 5.15 percent and the reverse repo at 4.90 percent.

The bank was widely expected to ease the policy rates by quarter points.

The bank said there is monetary policy space for future action. "However, given the evolving growth-inflation dynamics, the MPC felt it appropriate to take a pause at this juncture," the bank said.

The rupee fell to 71.53 against the greenback, from an early 1-week high of 71.31. The pair was worth 71.37 at yesterday's close. The rupee is likely to face support around the 73.00 region, if it falls again.

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