Even though the RBI left the policy rates unchanged, borrowers can expect lower rates with HDFC Bank saying there is more room for banks to lower lending rates.
The dollar headed for a second day of losses on Thursday, falling against euro, yen and the basket of currencies that measures its broader strength.
US retail sales rose more than expected in Jan as households bought electronics and a range of other goods.
It rose 0.2 percent to 114.50 yen and a quarter of a percent to $1.0552 per euro, its strongest in a month.
WPI inflation is expected to rise in the next three months and is likely to average around 4.4 per cent in 2017, much higher than 2% in 2016, says a Nomura report
China consumer inflation also rose more than expected, nearing a three-year high as fuel and food prices jumped.
India Inc today pitched for lower lending rates to improve the credit flow as wholesale inflation rose at the fastest pace of 5.25 per cent
Consumer prices increased by 1.8% compared with a year earlier, picking up from 1.6% in Dec.
Wholesale inflation shot up to a 30-month high of 5.25 per cent in January as rising global crude oil prices spiked domestic fuel cost, even as food prices moderated
India's annual consumer price inflation eased to 3.17 percent in January, its lowest level in at least five years, helped by a sharp cooling in food prices.