In its previous guidance, the committee had said that it will take into account the cumulative rate hikes, and the lags with which they impacted economic activities and inflation. While the rate action has been largely factored in by market participants, the forward guidance on rate trajectory is what will matter more to them.
Largely, the fall is in line with weakness in the US markets, which are volatile as the US Federal Reserve further hiked interest rates to bring down inflation to its target even as volatility in the banking system continued due to the recent collapse of some banks.
Nifty futures on the Singapore Exchange quoted 18 points, or 0.10 per cent, lower at 18.237, hinting at a muted start for the domestic market on Wednesday.
The dollar surged this month against its peers in developed and emerging nations as persistently high inflation in the US bolstered bets for more aggressive Fed rate hikes