India holds rates to support rupee, gives dovish outlook

Indian Rupees

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India's central bank left interest rates unchanged on Tuesday as it supports a battered rupee but said it will roll back recent liquidity tightening measures when stability returns to the currency market, enabling it to resume supporting growth.

(Read more: India's central bank shows resolve on rupee ahead of key debt sale)

As expected, the Reserve Bank of India left its policy repo rate at 7.25 percent but took a dovish tone as it cut its growth forecast for Asia's third-largest economy to 5.5 percent for the fiscal year, from 5.7 percent previously.

It held the cash reserve ratio at 4.00 percent.