Rupee settles 8 paise lower at 72.99 against US dollar amid RBI policy move

The rupee fell 8 paise to close at 72.99 (provisional) against the US dollar on Friday, with forex market participants weighing RBI policy measures aimed at mitigating the COVID-19 impact on the economy.

Reserve Bank of India (RBI) on Friday decided to leave benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance amid the second COVID wave.

At the interbank forex market, the local unit opened on a weak note at 73.00 against the greenback and witnessed an intra-day high of 72.95 and a low of 73.13.

It finally ended at 72.99, registering a fall of 8 paise over its previous closing. On Thursday, the rupee had settled at 72.91 against the US dollar.

RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01 per cent to 90.51.

Brent crude futures, the global oil benchmark, rose 0.49 per cent to USD 71.66 per barrel.

On the domestic equity market front, the BSE Sensex ended 132.38 points or 0.25 per cent lower at 52,100.05, while the broader NSE Nifty declined 20.10 points or 0.13 per cent to 15,670.25.

Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 1,079.20 crore, as per exchange data.