Indian rupee ended lower against the US dollar on Friday on increased demand for the greenback from importers and banks. Sentiments were impacted after the Reserve Bank kept policy rates unchanged for the sixth time in a row. Reserve Bank of India (RBI) decided to leave benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance amid the second COVID wave. Besides, Reserve Bank lowered the country's growth projection for the current financial year to 9.5 percent from 10.5 percent estimated earlier, amid uncertainties created by the second wave of the coronavirus pandemic. However, losses remain capped as traders found some support with union Minister Anurag Singh Thakur’s statement that financial inclusion is a top priority for the government and that promoting financial education would help in realising the collective potential. On the global front, dollar index held near a three-week high on Friday and moves in currency markets were muted as traders waited for closely-watched U.S. non-farm payrolls data later in the session.
Finally, the rupee ended 72.99, weaker by 8 paise from its previous close of 72.91 on Thursday. The currency touched a high and low of 73.13 and 72.95 respectively.
