Indian rupee tumbled against dollar on Thursday despite RBI decided to keep the key benchmark policy rate at 6.5 per cent. The rate hike has been paused after six consecutive rate increases aggregating to 250 basis points since May 2022. Consequently, the standing deposit facility (SDF) rate remains unchanged at 6.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate at 6.75 per cent. Moreover, the RBI has marginally raised its GDP growth projection for FY24 to 6.5% from earlier estimate of 6.4%. On the global front, Russian rouble fell sharply to a near one-year low above 80 to the dollar on Thursday as tight foreign exchange supplies and capital outflows combined with limited liquidity to outweigh support from relatively strong oil prices. Also, traders were concerned about the global economic outlook.
Finally, the rupee ended at 81.92 (Provisional), weaker by 2 paise from its previous close of 81.90 on Wednesday. The currency touched a high and low of 82.06 and 81.83 respectively.
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