Rupee rises 13 paise to 83.40 against US dollar

BNE News Desk

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Mumbai: The rupee rose 13 paise to 83.40 against the US dollar on Friday, tracking a strong trend in domestic equity markets after the Reserve Bank of India (RBI) kept the key policy rate steady.

As per reports, the rupee's strength was further supported by a weak US currency against major global currencies and lower crude oil prices in international markets, forex traders reported. However, the gains were partially offset by foreign fund outflows.

Notably, on the interbank foreign exchange market, the local currency opened strong at 83.46 and fluctuated between 83.48 and 83.37 versus the US dollar. The currency finally finished at 83.40 against the dollar, up 13 paise from the previous close.

On Thursday, the rupee had settled 9 paise lower at 83.53 against the dollar.

The RBI, announcing its second bi-monthly monetary policy for the current financial year, decided to keep the repo rate unchanged at 6.5 percent, emphasising a vigilant stance on inflation. RBI Governor Shaktikanta Das stated that the Monetary Policy Committee (MPC) aims to maintain stability amid economic uncertainties.

Meanwhile, the dollar index, which measures the greenback's strength against a basket of six major currencies, traded slightly lower by 0.03 percent at 104.03. Brent crude futures, the global oil benchmark, declined by 0.25 percent to USD 79.67 per barrel.

Reflecting the positive sentiment in the equity markets, the 30-share BSE Sensex surged by 1,618.85 points, or 2.16 percent, to close at a lifetime high of 76,693.36. The broader NSE Nifty also rose by 468.75 points, or 2.05 percent, to a new peak of 23,290.15.

On the investment front, foreign investors were net buyers of Indian equities on Friday, with net purchases amounting to Rs 4,391.02 crore.

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BNE News Desk