Indian rupee ended higher against the dollar on Friday after the Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent. This was the first reduction since May 2020 and the first revision after two-and-a-half years. However, gains remained capped as the RBI has lowered its GDP growth projections for the first and second quarters of the fiscal 2025-2026 amid the concerns over the protectionist trade policies by US president Donald Trump. Besides, the exchange data showed Foreign institutional investors (FIIs) offloaded equities worth Rs 3,549.95 crore in the capital markets on a net basis on Thursday. On the global front, U.S. dollar held steady on Friday ahead of key U.S. payroll figures later in the day, after the yen climbed to a nine-week high as market players piled on bets for more interest rate hikes in Japan.
Finally, the rupee ended at 87.50 (Provisional), appreciated by 9 paise from its previous close of 87.59 on Thursday. The currency touched a high and low of 87.57 and 87.33 respectively.
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