Indian rupee strengthened against the US dollar on Friday after Reserve Bank of India kept the benchmark interest rate unchanged at 4% and decided to continue with its accommodative stance despite rising inflation. While announcing the monetary policy, RBI Governor said the Indian economy has large forex reserves and that it stands ready and resolute to defend the economy. He also said that the Indian economy is steadily reviving from the pandemic induced slowdown. However, Foreign Institutional Investors (FIIs) remained net sellers in the capital market on Thursday as they offloaded shares worth Rs 5,009.62 crore, exchange data showed. On the global front, US dollar extended a relentless upward movement followed by the prospect of a more aggressive pace of Federal Reserve interest rates hikes.
The partially convertible currency is currently trading at 75.77, stronger by 26 paise from its previous close of 76.03 on Thursday. The currency touched a high and low of 75.9950 and 75.7050 respectively.
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