The rupee is climbing after India's central bank unexpectedly holds rates

Indian rupee is up on Wednesday after the Reserve Bank of India unexpectedly held rates.

The currency is higher by 0.4% at 67.110 per dollar as of 8:24 a.m. ET.

India’s central bank held its benchmark interest rate at 6.25%, signalling the end of a loosening cycle.

“The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index or CPI inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2%, while supporting growth,” the RBI said in its statement.

“Looking ahead, with inflation set to accelerate, we continue to think that rate hikes will come onto the agenda much sooner than is generally anticipated,” argued Shilan Shah, India economist at Capital Economics, in a note to clients.

As for the rest of the world, here’s the scoreboard as of 8:24 a.m. ET:

  • The US dollar index is up by 0.2% at 100.43 ahead of a quiet data day. The Department of Energy’s inventories will be released at 10:30 a.m. ET.
  • The euro is down by 0.1% at 1.0667 against the dollar. Separately, the latest report from the International Monetary Fund said that Greece’s debt will become “explosive” within 13 years. The IMF said that the debt-ridden country will struggle when it has to refinance its loans at market rates in 2030.
  • The Russian ruble is up by 0.2% at 59.2390 per dollar, while Brent crude oil, the international benchmark, is down by 0.3% at $54.95 per barrel.
  • The Mexican peso is higher by 0.4% at 20.5382 per dollar.

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