RBI MPC impact: Rupee slips below 90 versus dollar after 25 bps repo rate cut. Here's why

The rupee weakened by 18 paise to slip past 90 against the US dollar after the RBI cut the repo rate by 25 bps to 5.25%, triggering a drop in yields and selling pressure. Analysts expect the currency to trade between 89.75 and 90.25 for the day. The RBI’s dovish stance and new liquidity measures — including a ₹1 lakh crore OMO and a three-year dollar–rupee swap — are seen as negative for the rupee in the near term.