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Rupee ends higher against dollar as RBI maintains status quo

08 Apr 2022 Evaluate

Reversing previous session losses, Indian rupee ended stronger against dollar on Friday amid Reserve Bank of India maintaining status quo on the benchmark lending rate. RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) has decided unanimously to keep the repo rate unchanged at 4%. This is the first monetary policy for FY23. The rate remained unchanged for the eleventh time in a row. The MPC also decided to continue with its 'accommodative' stance of policy. The reverse repo rate also remained unchanged at 3.35 per cent. Traders also took support with RBI Governor Shaktikanta Das’ statement that the Indian economy has large forex reserves and that it stands ready and resolute to defend the economy. On the global front, dollar index strengthened to 100 for the first time in nearly two years on Friday, supported by the prospect of a more aggressive pace of Federal Reserve interest rate hikes.

Finally, the rupee ended at 75.93 (Provisional), stronger by 10 paise from its previous close of 76.03 on Thursday. The currency touched a high and low of 75.99 and 75.70 respectively.

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