Indian currency appreciated in early trade ahead of RBI policy results
Indian currency appreciated in early trade ahead of RBI policy results
The rupee appreciated by 46 paise to 78.94 against the US dollar in early trade on Friday, August 5, 2022, ahead of the outcome of the Reserve Bank of India’s policy meeting.
At the interbank foreign exchange, the rupee opened at 79.15 against the US dollar, then touched 78.94, registering a gain of 46 paise over its previous close.
On Thursday, the rupee declined by 25 paise to close at 79.40 against the dollar.
In opening deals, the local unit saw an opening high of 78.94 and a low of 79.17 against the US currency.
Continuous foreign fund inflows into the capital markets and softening crude oil prices boosted the local currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.14 per cent to 105.84.
Global oil benchmark Brent crude futures rose 0.22 per cent to $94.33 per barrel.
Foreign institutional investors remained net buyers in the capital markets on Thursday as they bought shares worth Rs 1,474.77 crore, according to exchange data.
The central bank has already announced that it will gradually withdraw its accommodative monetary policy stance.
The Reserve Bank of India’s rate-setting panel – the Monetary Policy Committee – will announce its bi-monthly review later in the day.