Rupee rises 37 paise to close at 81.36 against US dollar as RBI raises rates by 50 bps
India Today
On Thursday, the rupee recovered from record lows to settle 20 paise higher at 81.73 against the dollar.
The rupee extended its initial gains and settled 37 paise higher at 81.36 against the US dollar on Friday after the Reserve Bank of India raised the benchmark lending rate by 50 basis points.
On the interbank forex market, the local unit opened at 81.60 against the greenback. It witnessed an intra-day high of 81.17 and a low of 81.69 during the session.
It finally ended at 81.36, up 37 paise from its previous close.
On Thursday, the rupee recovered from record lows to settle 20 paise higher at 81.73 against the dollar.
The Reserve Bank of India (RBI) on Friday raised the benchmark lending rate by 50 basis points, the fourth straight increase since May, as it extended its battle to tame stubbornly high inflation.
The Monetary Policy Committee (MPC), comprising three members from the RBI and three external experts, raised the key lending rate or the repo rate to 5.90 per cent -- the highest since April 2019 -- with five out of the six members voting in favour of the hike.
"Rupee strengthened sharply in today's session after the RBI decided to raise rates by 50 bps," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.
