Below are Quote on Rupee by Mr. Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services
"The RBI policy was very interesting and it felt like a quantitative easing programme. The key take away is that the RBI will continue to maintain the ultra-loose monetary policy and infuse liquidity for a long time as Covid surge will keep imparting uncertainty to growth outlook. The RBI has reiterated that growth is the priority. Also, CPI Q4 FY22 projection has been reduced to 5% from 5.2% earlier which means inflation will be moderated in the future, and this statement rules out any monetary tightening speculations. The forex market wasn't expecting such a dovish stance and rupee got set on fire. The resistance in USDINR spot have become support as RBI intervention was missing. The post policy knee jerk reaction will simmer and the USDINR spot will trade in between 73.50-74.50."
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