Rupee gains 3 paise to settle at 72.93 as RBI keeps repo rate unchanged

The rupee gained 3 paise to settle at 72.93 (provisional) against the US dollar on Friday after the Reserve Bank kept the policy rate unchanged but maintained its accommodative stance. At the interbank forex market, the local unit opened at 72.98 against the greenback and witnessed an intra-day high of 72.80 and a low of 72.99.

It finally ended at 72.93 against the American currency, registering a rise of 3 paise from its previous close.On Thursday, the rupee had settled at 72.96 against the American currency.

"Indian Rupee gained strength amid surge in domestic markets and as Reserve Bank of India kept repo rate unchanged at 4.0 per cent and maintained its accommodative stance. However, sharp upside was prevented on strong dollar and surge in crude oil prices," said Saif Mukadam, Research Analyst, Sharekhan by BNP Paribas.

The six-member Monetary Policy Committee (MPC) voted to continue with the accommodative stance as long as it is necessary to revive growth and mitigate the impact of COVID-19 on the economy while ensuring that inflation remains within the target, Governor Shaktikanta Das said.Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.13 per cent to 91.41.

On the domestic equity market front, the BSE Sensex ended 117.34 points or 0.23 per cent higher at 50,731.63, while the broader NSE Nifty climbed 28.60 points or 0.19 per cent to 14,924.25.Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 1,936.74 crore on Thursday, according to exchange data.

Brent crude futures, the global oil benchmark, rose 1.24 per cent to USD 59.57 per barrel.