The rupee erased its initial gains and was trading weak by 21 paise at 62.13 against the dollar as the dollar index hit 11 1/2-year high, while the euro crashed through support levels that have held for more than a month.

Also, the rupee sentiment was hit as the euphoria generated by the RBI repo rate cut did not last even a full day with the Sensex tanking by more than 210 points today.

After opening higher by 26 paise at 61.66 per dollar against the previous close of 61.92 on RBI’s surprise repo rate cut by 25 bps, the rupee hovered in the range of 61.65 and 62.16 in the afternoon trade.

RBI Governor Raghuram Rajan in a statement said softer readings on inflation are expected to come in through the first half of 2015-16 before firming up to below 6 per cent in the second half.

Source:- udaipurkiran.com