INR SETTLES HIGHER AMID FIRM TREND IN EQUITIES AND RBI POLICY

Published on Jun 07, 2024 17:13

The Indian rupee appreciated 14 paise to 83.39 (provisional) against the US dollar on Friday, in line with a firm trend in domestic equity markets after the Reserve Bank kept the key policy rate unchanged. Local equities posted strong gains as RBI left the repo rate unchanged at 6.5 percent in its second meeting of FY25 while raising its GDP growth projection to 7.2 percent for 2024-25 from 7 percent earlier. The BSE Sensex surged to a record peak of 76,795.31 before ending the session up 1,618.85 points, or 2.16 percent, at 76,693.36. The broader NSE Nifty index closed at 23,290.15, up 468.75 points, or 2.05 percent, from its previous close. Meanwhile, weakness in the American currency against major crosses overseas and lower crude prices in international markets also supported the local currency. However, foreign fund outflows restricted the upward movement in the rupee.