INR SETTLES ON FLAT NOTE

Published on Dec 06, 2024 17:04

The Indian rupee settled on a flat note and appreciated by just 1 paisa to close at 84.70 (provisional) against US dollar on Friday, as the Reserve Bank of India left repo rate unchanged at 6.5 per cent in its monetary policy decision. The Reserve Bank of India on Friday kept its key interest rate unchanged citing inflation risks, but cut the Cash Reserve Ratio that banks are required to park with the central bank, boosting money with lenders to support a slowing economy. The central bank downgraded its real GDP growth outlook for 2024-25 to 6.6 percent from 7.2 percent. The inflation outlook for 2024-25 has been raised to 4.8 percent from 4.5 percent, with Q3 at 5.7 percent and Q4 at 4.5 percent. An overall decline in the US dollar and crude oil prices supported the rupee. However, weak domestic markets capped sharp gains. The benchmark S&P Sensex ended down 56.74 points, or 0.07 percent, at 81,709.12 while the broader NSE Nifty index closed at 24,677.80, down 30.0 points, or 0.12 percent, from its previous close.