Rupee drops an inch at Mumbai foreign exchange market

On Wednesday the rupee that was recovered from the early losses, by trading steady at 68.54 against the American currency in late morning deals ahead of the key of Reserve Bank of India (RBI) policy decision was held due for later.

The rupee dropped an inch at 68.55 from Tuesday’s closing level of ₹68.54 at the interbank foreign exchange market in Mumbai.
It slipped further to 68.60 before recovering to trade higher at 68.48. The domestic unit was trading stable at its overnight level of 68.54 at 10:30 hrs. The Indian unit shuffled between 68.48 and 68.60 during morning deals.

The central bank is expected to maintain its neutral policy stance as given by the volatility in crude oil and food prices as well as inflationary concerns, a dealer said.

Overseas, the U.S. dollar took a  rise against its major peers in early Asian trade, while hanging on the yuan after a source said the White House was about to propose higher tariffs of $200 billion on the Chinese imports, might have sparked a new round of trade hostilities.