Rupee settles 8 paise lower at 72.99 against US dollar
Mumbai: The rupee lost 8 paise to close at 72.99 against the US dollar after a range-bound session on Friday as cautious forex market participants seemed weighing RBI policy measures aimed at mitigating the COVID-19 impact on the economy.
The Reserve Bank of India (RBI) left key interest rates unchanged at record lows and announced new measures to support the economy after the nascent recovery was pummelled by the devastating second wave of COVID-19 infections.
At the interbank forex market, the local unit opened on a weak note at 73.00 against the greenback and witnessed an intra-day high of 72.95 and a low of 73.13.
It finally ended at 72.99, registering a fall of 8 paise over its previous closing.
On a weekly basis, the rupee has depreciated by 54 paise to the US currency.
"In line with expectation, the RBI held rates unchanged and maintained an accommodative stance. The governor mentioned that the central bank will continue to hold this view as long as necessary," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.
"Inflation and growth projections were keenly eyed and with second wave of coronavirus leading to partial lockdown in many states market participants were expecting lower growth projections. Overall the policy statement was dovish and that could keep the rupee weighed down against the US dollar," Somaiyaa added.
RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01 per cent to 90.51.
Brent crude futures, the global oil benchmark, rose 0.49 per cent to USD 71.66 per barrel.
On the domestic equity market front, the BSE Sensex ended 132.38 points or 0.25 per cent lower at 52,100.05, while the broader NSE Nifty declined 20.10 points or 0.13 per cent to 15,670.25.
Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 1,499.37 crore, as per exchange data.
