The rupee depreciated 22 paise to 96.57 against the US dollar in early trade on Wednesday, after the Reserve Bank of India raised the key benchmark policy rate by 25 basis points to 5.5 per cent.
Market analysts said the RBI's rate hike reflects rising cyclical inflation risks, while the shift in stance to 'calibrated tightening' alongside higher growth and inflation projections highlights the MPC's hawkish approach.
