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The rupee recovered 15 money from its all-time low closing level to 87.44 (provisional) against the US dollar on Friday, when the Reserve Bank of India reduced the repo rate by 25 basis points as per the road expectations.
Rupee recovered 15 money from a low closing level of all its time.
The rupee recovered 15 money from its all-time low closing level to 87.44 (provisional) against the US dollar on Friday, when the Reserve Bank of India reduced the repo rate by 25 basis points as per the road expectations.
The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, dropped the repo rate from 25 basis points to 6.25 percent. This was the first shortage after May 2020 and two and a half years later was the first amendment.
In the interbank foreign currency, the rupee opened at 87.57, touched the intra-day high of 87.33 against Greenback during the session and a low of 87.57.
The local unit eventually settled for the day at 87.44 (provisional) against the US dollar, registering a growth of 15 money from its previous nearly.
On Thursday, the rupee immersed 16 money to shut down at a low of 87.59 against the US dollar.
“We hope that the rupee will trade with negative bias between weak domestic markets and dollars demand from importers. The risk of risk in global markets can also be a weight on the rupee amidst the ongoing uncertainty on US trade tariffs, “said research analyst Anuj Chaudhary at Mirae Asset Sharekhan.
The RBI cut the repo rate from 25 BPS to 6.25 percent to 6.5 percent, in line with the expectations of the road, “Thus, the markets did not react very fast.” Meanwhile, the dollar index, which gauge the gauge of greenback, was trading up 0.04 percent less against a basket of six currencies, 0.04 percent less on 107.64.
Global oil benchmark, Brent crude, increased USD 74.96 in futures trade by 0.90 percent.
Reserve Bank Governor Sanjay Malhotra said on Friday that the exchange rate policy has been continuously for years and the Central Bank does not target any “specific level or band” of the rupee, which all time of 87.59 against the US dollar Slipped for on Thursday.
The governor further stated that the exchange rate policy has been continuously for years and the central bank does not target any “specific level or band” of the rupee.
“We should not see day-to-day instability in the rupee”, but should focus on the long-term exchange rate, he said.
Malhotra said that the RBI was committed to taking carefully calibrated monetary policy decisions, which was to facilitate the favorable macroeconomic conditions that strengthen the price stability, continuous economic growth and financial stability.
The local unit has lost more than 2 percent so far this year. A sharp decline in the domestic unit comes in 2024 after a decline of about 3 percent in the USD/INR pair, which is one of the worst performing Asian currencies.
On January 1, 2024, the rupee was at 83.21 against the Greenback.
The rupee has lost 180 money so far this year. The domestic unit was quoted on 1 January 2025 against Greenback at 85.64.
Forex traders said that the rupee is trading with negative bias on global trade war as the market participants had reduced the impact of tariffs being imposed by the US and China.
In the domestic equity market, the 30-cheer BSE Sensx scored 197.97 points, or 0.25 percent, less than 77,860.19 points, while the Nifty was below 43.40 points or 0.18 percent, at 23,559.95 points.
According to exchange data, foreign institutional investors (FII) on Thursday climbed capital markets at a price of Rs 3,549.95 crore on a pure basis.
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(This story has not been edited by News18 employees and a syndicated news agency has been published from feed – PTI,
