The Indian rupee gained as much as 17 paise against the US dollar on Thursday as the benchmark Sensex rallied more than 400 points dismissing the threats of another possible trade war between the US and China with investors keenly awaiting the RBI's repo rate decision.
The Indian rupee gained as much as 17 paise against the US dollar on Thursday as the benchmark Sensex rallied more than 400 points dismissing the threats of another possible trade war between the US and China with investors keenly awaiting the RBI’s repo rate decision. The rupee got appreciated by 17 paise to 64.98 apiece US dollar at the interbank foreign exchange market on Thursday. In the last one month of trade in the forex markets, the domestic currency had shuttled between the range of 64.8 and 65.3 against the United States dollar.
The Reserve Bank of India had fixed a reference rate of 65.0232 against the US dollar on Wednesday. Earlier yesterday, the rupee tumbled as much as 14 paise to 65.15 against the US dollar on China’s move to impose additional tariffs in a retaliatory measure against the Trump administration.
The Reserve Bank of India headed by the governor Urijit Patel has started the six-member two-day bi-monthly policy meeting on 4 April 2018 is likely to announce the decision on key lending rates at around 2:30 pm today. The Reserve Bank of India has kept the benchmark repo rates unchanged in the last three monetary policy meets. Earlier in August last year, RBI slashed the repo rates by 25 basis points bringing it to a 6-year low to 6%.
Meanwhile, the crude oil prices inched higher on Thursday with US West Texas Intermediate Crude trading up 0.39% at 63.62 and the Brent Crude trading 0.43% higher at 68.31. Crude oil prices rose on Thursday, holding onto a late-session rally the previous day, buoyed by the US government data showing a surprise drawdown in crude stockpiles, Reuters said in a report.
The Us dollar inched up against the yen on Thursday as stocks bounced back from a sell-off triggered by an escalating US-China trade dispute, Reuters reported. The US dollar index against a basket of six major currencies was effectively flat at 90.123.