Rupee Sheds 16 Paise to 73.07 against Dollar

RBI move to keep policy rates unchanged drives currency down against greenback

Rupee Sheds 16 Paise to 73.07 against Dollar
Rupee Sheds 16 Paise to 73.07 against Dollar in Early Trade
PTI - 04 June 2021

The rupee slumped 16 paise to 73.07 against the dollar in the opening trade on Friday after the Reserve Bank kept policy rates unchanged for the sixth time in a row.

The Reserve Bank of India (RBI) on Friday decided to leave the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance amid the second Covid wave.

At the interbank foreign exchange, the rupee opened lower at 73 against the dollar and lost further ground to touch 73.07, registering a fall of 16 paise over its previous close. On Thursday, the currency had settled at 72.91 against the greenback.

RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) voted unanimously for keeping interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.05 per cent to 90.56.

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