The Reserve Bank of India cut the cash reserve ratio by 50 basis points on Tuesday to ease tight liquidity, but held key rates steady as core inflation remains stubbornly high.

RBI Governor Duvvuri Subbarao said financial markets should not be under the impression that recent administrative steps that authorities have taken to curb speculation in foreign exchange are temporary.

At 9 a.m. (0330 GMT), the rupee opened at 50.00 to the dollar, firmer than 50.07/08 at close on Tuesday.