For NRIs Remitting Funds, Rupee Nears Record Low Ahead of RBI Policy Decision

The Indian rupee neared a record low according to media reports ahead of the Reserve Bank of India policy decision.

Reserve Bank of India Governor Sanjay Malhotra stated that markets can be irrational in the short run.

Media reports noted Malhotra addressed whether future moves would involve a rate hike or a pause instead of rate cuts.

Ahead of the decision, India Today reported markets were watching whether the Reserve Bank of India Monetary Policy Committee would hike the repo rate by 25 basis points to 5.50 percent.

According to The Financial Express, the Sensex dropped 400 points and the Nifty fell below 22,650 ahead of the policy announcement.

Reuters reported Indian shares declined as the RBI rate hike signaled tighter policy.

For non-resident Indians tracking exchange rates or holding rupee deposits, central bank policy moves and currency levels determine remittance value and deposit returns.