Rupee rises 81 paise to close at 94.93 against US dollar
The rupee appreciated 81 paise to close at 94.93 (provisional) against the US dollar on Friday after the Reserve Bank announced measures to support foreign capital inflows and strengthen forex liquidity.
Forex traders said the announcements in the RBI policy boosted investor sentiments after the apex bank asserted that the country’s forex reserves provide a sufficient buffer against external shocks.
The RBI expectedly kept interest rates unchanged for the second time in a row as it weighed the impact of rising energy prices and supply disruptions caused by the West Asia crisis. At the interbank foreign exchange market, the rupee opened at 95.72, then touched an intraday high of 94.89 and finally ended the session at 94.93 (provisional), registering a rise of 81 paise from its previous close. On Thursday, the rupee rose 2 paise to settle at 95.74 against the US dollar.
Announcing the second bi-monthly monetary policy for the current fiscal, RBI Governor Sanjay Malhotra said the Monetary Policy Committee (MPC) has unanimously decided to retain the short-term lending rate or repo rate at 5.25 per cent with a neutral stance. By holding the repo rate at 5.25 per cent with a neutral stance, even while raising the FY27 inflation forecast by 50 basis points to 5.1 per cent, the RBI has drawn a clean line.
