RUPEE OPENED AT 71.45/46

USDINR opened 20 pips firm at 71.45/46 levels against yesterday closed at 71.65/66 levels. USDINR getting firm mainly overseas Dollar sharp fall as well as Bond Yields constantly moving to south side. Rupee also got some support after the outcome from the RBI’s board meeting on Monday removed uncertainty over a growing rift over policy decisions between the government and the central bank.

INTRADAY RANGE - (71.23 - 71.75) 72.00

1. RBI agreed to pump up to Rs 8,000 crore into the market

2. A committee will examine the issue of transferring RBI's surplus to the government

3. The RBI board meeting lasted nine hours

A closely watched meeting of the board of the Reserve Bank of India ended this evening with the central bank agreeing to increase liquidity in the open market. The central bank will pump in up to Rs 8,000 crore into the market by purchasing government bonds.

An increased cash flow was among the issues that had brought the Urjit Patel-led RBI and the Narendra Modi government at loggerheads.

The RBI board, which consists of RBI director Urjit Patel, his four deputies and 13 other members either from or appointed by the government, discussed all the contentious issues on which the central bank and the government had clashed.

In a press statement released after the meeting, the RBI said that some of those issues will be examined by pre-existing committees or panels.

A new committee, however, will be set up to examine the crucial issue of whether the RBI should have over its surplus reserve money to the government.