Rupee falls 5 paise to 81.95 against US dollar ahead of RBI policy decision

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The value of the rupee fell by 5 pounds to 81.95 against the US dollar in early trading on Thursday, as investors preferred to stay on the sidelines ahead of the RBI’s policy decision.

In the interbank foreign exchange market, the local unit opened weakly at 81.95 against the dollar, recording a decrease of 5 pounds from its last close. In initial trading, the local unit also saw a rise, at 81.88 against the dollar.

On Wednesday, the rupee rose 42 pounds to close at 81.90 against the US dollar.

Today, the Reserve Bank of India (RBI) will release its monetary policy results, which should turn eyeballs on the Indian rupee as the markets have already factored in Interest rate hike of 25 basis points by the Reserve Bank of IndiaCR Forex Advisors MD Amit Babari said.

Also read: Why is the Reserve Bank of India (RBI) likely to raise interest rates again?

Reserve Bank of India rate setting committee on Monday She began her meeting for three days Amid expectations that the central bank may raise the benchmark interest rate by 25 basis points, perhaps the last in the current monetary tightening cycle that began in May 2022.

Babari further indicated that Reserve Bank Governor Shaktikanta Das, who chairs the Monetary Policy Committee, would reserve his option to raise rates by continuing to “withdraw accommodative” and sticking to his tightening policy.

“However, if the RBI governor hints at a pause in interest rates or surprises with a smaller rate hike in his speech, it will hurt domestic unity,” he said.

Also read: It’s time for RBI to stop

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, rose 0.16 percent to 102.01.

Brent crude futures, the global oil benchmark, fell 0.92 percent to 84.21 Indian rupees per barrel.

In the local stock market, BSE Sensex, which includes 30 shares, was trading 89.46 points, or 0.15 percent, at 59,599.85 points. The broader NSE Nifty index fell 22.45 points, or 0.13 percent, to 17,534.60 points.

Foreign institutional investors (FIIs) were net buyers in the capital markets on Wednesday buying shares worth Rs 806.82 crore, according to exchange data.