Rupee slips to near 2-month lows, ends at 75.50 against USD

  • | Wednesday | 8th December, 2021

Mumbai, Dec 8 (PTI) The Indian rupee fell to a near two-month low of 75.50 against the US dollar on Wednesday as RBI"s bi-monthly monetary policy decision failed to enthuse forex market participants. Meanwhile, the Reserve Bank left the key policy rate unchanged and retained its accommodative policy stance to support economic growth. At the interbank forex market, the local unit opened strong at 75.38 against the greenback but could not hold on to the gains and slipped into negative territory. The local unit witnessed an intra-day high of 75.36 and a low of 75.57. It finally ended at 75.50 against the American currency, registering a fall of 6 paise over its previous close of 75.44. "Rupee has reacted slightly negative post RBI policy meeting. RBI has maintained status quo and an accommodative stance even after global central banks are gradually withdrawing loose monetary policy," Dilip Parmar- Research Analyst, HDFC Securities, said. "The set up for rupee remains bearish as Fed likely to be hawkish while the RBI remained dovish. Spot USD/INR is having resistance at 75.67 and support at 75.15," he added. The Reserve Bank of India on Wednesday kept borrowing costs at a record-low for the ninth consecutive time, as it decided to continue supporting economic growth amid uncertainty over the impact of the Omicron strain on the economy. The reverse repo rate -- the level at which it absorbs excess cash from lenders -- was kept unchanged at 3.35 per cent. It kept the GDP growth projections unchanged at 9.5 per cent for the current fiscal and retained the inflation forecast of 5.3 per cent for the full year. On the domestic equity market front, the BSE Sensex ended 1,016.03 points or 1.76 per cent higher at 58,649.68, while the broader NSE Nifty rose 293.05 points or 1.71 per cent to 17,469.75. Brent crude futures, the global oil benchmark, rose 1.33 per cent to USD 76.33 per barrel. The dollar index, which gauges the greenback"s strength against a basket of six currencies, declined 0.17 to 96.21. Foreign institutional investors remained net sellers in the capital markets, pulling out Rs 2,584.97 crore on Tuesday, as per provisional data. PTI BAL MKJ

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