The Indian rupee on Friday settled 48 paise higher at 76.39 against the US dollar, rebounding from an all-time low hit a day earlier, buoyed by RBI measures to prop up the economy reeling under the Covid-19 impact.
A strong rally in domestic equities also helped in improving forex market sentiment. At the interbank foreign exchange, the rupee opened at 76.59 and then gained further ground to touch a high of 76.35 against the US dollar. The domestic unit finally settled for the day at 76.39 against the US dollar, registering a rise of 48 paise over its previous close.
On weekly basis, the Indian unit lost 12 paise or 0.15 per cent against the USD. On Thursday, the rupee had settled at an all-time low of 76.87 against the US dollar.
In a much anticipated move, the RBI announced a slew of measures to infuse liquidity in the financial system including a cut in the reverse repo rate, Rs 50,000-crore targeted long-term repo operations (TLTRO) and refinancing facilities for Nabard, Sidbi and NHB.
Forex traders said these measures announced by Reserve Bank Governor Shaktikanta Das would provide the much needed liquidity and ease the financial stress caused by the pandemic.