Rupee recovers 16 paise against US dollar

The rupee recovered 16 paise from all-time debased closing level to 87.43 against the US dollar successful aboriginal commercialized connected Friday (Febraury 7, 2025) up of the Reserve Bank of India's monetary argumentation announcement.

Forex traders said determination is an wide antagonistic bias successful the rupee arsenic marketplace participants are projecting RBI to chopped rates by 25 bps.

While a complaint chopped could assistance easiness immoderate of the unit by improving liquidity and attracting overseas investments, it would besides pb to an summation successful rupee supply, which could further weaken the currency and exacerbate depreciation pressures, they said.

At the interbank overseas exchange, the rupee opened astatine 87.57 against the greenback, and touched 87.43 against the greenback successful archetypal trade, registering a emergence of 16 paise from its erstwhile close.

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

"As agelong arsenic the liquidity shortage persists, the rupee volition stay nether pressure. Additionally, the CRR chopped is further weighing connected the rupee.

"With existent headwinds surpassing tailwinds and compounded by the RBI's complaint chopped expectations, the rupee is expected to commercialized astatine elevated levels betwixt 87.20 and 87.70, with 87.20 acting arsenic a enactment level," CR Forex Advisors MD Amit Pabari said.

The Monetary Policy Committee (MPC) of the Reserve slope of India (RBI) began its three-day gathering connected Wednesday. The MPC volition denote its argumentation determination astatine 1000 hrs.

New RBI Governor Sanjay Malhotra, who is chairing his archetypal Monetary Policy Committee (MPC) meeting, volition denote the determination of the six-member sheet connected Friday morning, amid wide expectations of 25 ground points simplification successful involvement complaint aft a spread of astir 5 years.

Meanwhile, the dollar index, which gauges the greenback's spot against a handbasket of six currencies, was trading 0.03 per cent higher astatine 107.72.

Brent crude, the planetary lipid benchmark, roseate 0.50 per cent to USD 74.66 per tube successful futures trade.

In the home equity market, the 30-share BSE Sensex was trading 39.26 points, oregon 0.05 per cent, little astatine 78,018.90 points, portion the Nifty was down 8.25 points, oregon 0.03 per cent, astatine 23,595.10 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 09:56 americium IST