The Indian rupee erased morning gains and trading lower after has slashed the repo rate by 25bps to 5.15%. This is the fifth straight cut by RBI in as many policy reviews in 2019 and takes the total quantum of reductions to 1.35%.10-year government bond yield was at 6.64%, up 34 basis points.
The rupee is currently trading lower by 9 paise at 70.96 against US Dollar in the afternoon trade.
The local unit opened slightly higher against the dollar in early trades, however, rising crude oil prices and unabated foreign fund outflows weighed on the local unit and restricted the upmove.
Further, the IHS Markit India Services Business Activity Index posted inside contraction territory for the first time in three months at 48.7 in September 2019. The headline figure was down from 52.4 in August and fell to its lowest mark since February 2018.