In contrast, Thursday saw the rupee settle at 83.36 versus the dollar following significant share sales by Foreign Institutional Investors (FIIs), amounting to ₹1,564.03 crore (INR100 crore = approx. USD12 million).
The Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, began discussions on Wednesday with expectations for interest rates to remain unchanged. This comes amidst a minor rise in the dollar index to 103.59 and an increase in Brent crude oil prices to $75.31 per barrel.
The stock market responded positively, with the BSE Sensex surging by over 229 points and the NSE Nifty by around 70 points. Previously, the rupee had appreciated by five paise on Wednesday, settling at 83.32 supported by the RBI’s efforts to maintain critical exchange rate thresholds.
Market participants are closely monitoring the outcome of the RBI’s review, which has implications for both domestic equities and the broader forex market. Meanwhile, Brent crude oil prices had dipped to a six-month low of $74.63 per barrel on Thursday, which traditionally supports the rupee’s value against stronger international currencies like the US dollar.
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