Rupee opens marginally higher after RBI policy decision

The rupee opened marginally higher and touched 69.21 against the US dollar in opening trade Friday, after the Reserve Bank cut key interest rates by 0.25 percentage point.

To boost the sagging economy, the RBI Thursday lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts.

Forex traders said investors welcomed the RBI policy decision as this would help to boost the slowing economy.

The rupee opened at 69.23 the interbank forex market then gained further ground to touch 69.21 per dollar amid positive opening in domestic equities, displaying gains of 7 paise against the greenback.

On Thursday, the rupee had settled at 69.28 against the US dollar.

Meanwhile, foreign fund inflows, higher crude oil prices and lower opening in domestic equities weighed on the domestic currency and restricted the upmove.

Foreign funds pulled out Rs 1,448.99 crore in the capital markets on a net basis Thursday, provisional data showed.

The benchmark BSE Sensex opened on a cautious note and was trading lower by 43.75 points or down 0.11 per cent to quote at 39,485.97. while the NSE Nifty was trading at 11,827.95, down 15.80 points, or 0.13 per cent.

Meanwhile, brent crude, the global benchmark, was trading at 62.53 per barrel higher by 1.39 per cent.

(This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.)