The Indian rupee depreciated by 5 paise, reaching 83.01 against the US dollar in early trade on Friday, influenced by a robust American currency and heightened global crude oil prices. Forex traders attribute the negative trend in domestic equities and foreign fund inflows as factors weighing on investor sentiment.
Opening at 82.96 against the dollar in the interbank foreign exchange, the rupee experienced an early low of 83.01 and a high of 82.95 in initial trade, reflecting the impact of external economic factors. Thursday saw the rupee closing at 82.96 against the US dollar, maintaining a flat note, following the Reserve Bank’s decision to uphold the key policy rate for the sixth consecutive time. This move is in line with the central bank’s commitment to closely monitor inflation.
The Reserve Bank of India (RBI) sustained the status quo in its monetary policy, leaving the repo rate unchanged at 6.5 per cent, aligning with market expectations. Additionally, the RBI revised GDP projections for FY24, setting it higher at 7.3 per cent from the initial 7 per cent, with a projected FY25 GDP at 7 per cent. The forecast for consumer price-based inflation (CPI) in FY25 was lowered to 4.5 per cent.
Simultaneously, the dollar index, gauging the strength of the US dollar against six major currencies, stood at 104.19, indicating a slight increase of 0.03 per cent. In the global oil market, Brent crude futures, the benchmark for oil prices, experienced a marginal decrease of 0.04 per cent, reaching USD 81.60 per barrel.
The domestic equity market mirrored a cautious sentiment, with the 30-share BSE Sensex trading 41.59 points or 0.06 per cent lower at 71,386.84 points. The broader NSE Nifty also faced a dip, down by 30.25 points or 0.14 per cent, settling at 21,687.70 points.
Check here for the latest updates in Hindi!