Market pricing 68% chance of an RBI rate cut on Dec 5

There is a 68% chance of Reserve Bank of India (RBI) cutting rates on Dec. 5, according to the overnight index swaps (OIS). 

The Indian central bank on Oct. 4 reduced rates by 25 basis points to 5.15%. The RBI has cut rates by 1.35% since February 2016 to counter the slowdown in the domestic economy and the fragile external sector. 

The USD/INR pair rose 0.45% to 70.86 on Monday. The currency pair hit a high of 72.42 in September.