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Rupee ends lower as RBI kept repo rate unchanged

10 Feb 2022 Evaluate

Continuing previous session weakness; Indian rupee ended lower against dollar on Thursday on emergence of demand for the greenback after the Reserve Bank of India kept benchmark lending rate unchanged and said it will continue with the accommodative stance. The MPC voted unanimously to keep the repo rate unchanged at 4 percent and voted 5:1 to continue with an 'accommodative' stance for as long as necessary to revive growth on a sustainable basis. This is the third straight session when the rupee is traded lower against dollar. Meanwhile, Anupriya Patel stated that India is in discussion with the 10-nation bloc ASEAN for initiating the review of the free-trade agreement in goods between the two regions to seek more market access for domestic products. On the global front, pound edged up against the dollar on Thursday amid generally calm currency markets as investors await key data on U.S. inflation which will inform the Federal Reserve's policy tightening plans.

Finally, the rupee ended at 74.94, weaker by 10 paise from its previous close of 74.84 on Wednesday. The currency touched a high and low of 75.05 and 74.88 respectively.

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