Rupee ends almost flat at 69.28 against dollar after RBI cuts rate
The Indian rupee recouped most of its early losses and closed marginally lower at 69.28 to the US dollar after the Reserve Bank in a widely expected move cut key interest rates by 0.25 percentage point.
To boost the sagging economy, the RBI Thursday lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts.
After opening on a weak note at 69.41 at the interbank forex market, the Indian unit fell further to 69.45 against the US currency. Following the RBI's Monetary Policy Committee (MPC) decision, the local currency recovered most of the lost ground and settled for the day at 69.28, down 2 paise over its previous close.
The rupee had settled at 69.26 against the US dollar Tuesday.
Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr.
"Market participants had already priced in the rate cut in monetary policy meet," said V K Sharma Head-PCG & ...