Rupee recovers 15 paise from all-time low level to close at 87.44 against U.S. dollar

Photo utilized for illustration intent only. | Photo Credit: Reuters

The rupee recovered 15 paise from its all-time debased closing level to 87.44 (provisional) against the U.S. dollar connected Friday (February 7, 2025) aft the Reserve Bank of India reduced repo complaint by 25 ground points successful enactment with thoroughfare expectations.

The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, slashed the repo complaint by 25 ground points to 6.25%. This was the archetypal simplification since May 2020 and the archetypal revision aft two-and-a-half years.

At the interbank overseas exchange, the rupee opened astatine 87.57, touched an intra-day precocious of 87.33 and a debased of 87.57 against the greenback during the session.

The section portion yet settled for the time astatine 87.44 (provisional) against the US dollar, registering a emergence of 15 paise implicit its erstwhile close.

On Thursday, the rupee plunged 16 paise to adjacent astatine an all-time debased of 87.59 against the US dollar.

"We expect the rupee to commercialized with a antagonistic bias amid anemic home markets and dollar request from importers. Risk aversion successful planetary markets amid ongoing uncertainty implicit US commercialized tariffs whitethorn besides measurement connected the rupee," said Anuj Choudhary -- Research Analyst astatine Mirae Asset Sharekhan.

The RBI chopped repo complaint by 25 bps to 6.25 per cent from 6.5 per cent, was successful enactment with thoroughfare expectations, Choudhary said, adding, "Thus, markets did not respond excessively sharply." Meanwhile, the dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading 0.04 per cent little astatine 107.64.

Brent crude, the planetary lipid benchmark, roseate 0.90 per cent to USD 74.96 per tube successful futures trade.

Reserve Bank Governor Sanjay Malhotra connected Friday said the speech complaint argumentation has remained accordant implicit the years and the cardinal slope does not people immoderate "specific level oregon band" of the rupee, which slipped to an all-time debased of 87.59 against the US dollar connected Thursday.

The politician further noted that the speech complaint argumentation has remained accordant implicit the years and the cardinal slope does not people immoderate "specific level oregon band" of the rupee.

"We should not beryllium looking astatine day-to-day volatility successful rupee", but absorption connected semipermanent speech rate, helium said.

Malhotra added that the RBI was committed to taking cautiously calibrated monetary argumentation decisions to facilitate conducive macroeconomic conditions that reenforce terms stability, sustained economical maturation and fiscal stability.

The section portion has mislaid implicit 2 per cent truthful acold this year. The crisp driblet successful the home portion comes aft astir a 3 per cent autumn successful the USD/INR brace successful 2024, making it 1 of the worst-performing Asian currencies.

On January 1, 2024, the rupee was astatine 83.21 against the greenback.

The rupee has mislaid 180 paise truthful acold this year. The home portion was quoted astatine 85.64 against the greenback connected January 1, 2025.

Forex traders said the rupee is trading with a antagonistic bias implicit the planetary commercialized warfare arsenic marketplace participants mulled the interaction of tariffs being imposed by the US and China.

In the home equity market, the 30-share BSE Sensex settled 197.97 points, oregon 0.25 per cent, little astatine 77,860.19 points, portion the Nifty was down 43.40 points, oregon 0.18 per cent, astatine 23,559.95 points.

Foreign organization investors (FIIs) offloaded equities worthy Rs 3,549.95 crore successful the superior markets connected a nett ground connected Thursday, according to speech data.

Published - February 07, 2025 04:23 p.m. IST