Rupee plunges over 14 paise in early trade against US dollar
The rupee slipped by over 14 paise in early trade on Thursday after opening on a flat note at 66.92 against the US dollar. The currency was hovering around 67.07 against the American currency at around 9.15 am (IST).
The local currency on Wednesday staged a smart recovery after a two-day fall and ended at a fresh one-month high of 66.93, rising by 23 paise against the US dollar, even as the RBI hiked repo rate by 25 basis points.
Forex market sentiment gained momentum in the previous trading session after the Reserve Bank of India retained growth forecast for the current fiscal at 7.4 per cent on hopes of further boost to investments and higher consumption.
A spectacular relief rally in local equities also supported the recovery momentum.
Meanwhile, domestic equity markets opened in green following global cues. The BSE Sensex was opened nearly 100 points, or 0.28 per cent, up at 35,278, whereas NSE Nifty index opened 37.95 points, or 0.36 per cent, higher at 10,722.60.
In its bi-monthly monetary policy held on Wednesday, the RBI increased the repo rate by 25 basis points. With the announcement, the repo rate now stands at 6.25 per cent. Along with this, reserve repo rate has also been hiked to 6 per cent.
The Monetary Policy Committee (MPC) unanimously agreed to hike the repo rate. This is the rate at which the central bank lends money to the banks.
The local currency on Wednesday staged a smart recovery after a two-day fall and ended at a fresh one-month high of 66.93, rising by 23 paise against the US dollar, even as the RBI hiked repo rate by 25 basis points.
Forex market sentiment gained momentum in the previous trading session after the Reserve Bank of India retained growth forecast for the current fiscal at 7.4 per cent on hopes of further boost to investments and higher consumption.
A spectacular relief rally in local equities also supported the recovery momentum.
Meanwhile, domestic equity markets opened in green following global cues. The BSE Sensex was opened nearly 100 points, or 0.28 per cent, up at 35,278, whereas NSE Nifty index opened 37.95 points, or 0.36 per cent, higher at 10,722.60.
In its bi-monthly monetary policy held on Wednesday, the RBI increased the repo rate by 25 basis points. With the announcement, the repo rate now stands at 6.25 per cent. Along with this, reserve repo rate has also been hiked to 6 per cent.
The Monetary Policy Committee (MPC) unanimously agreed to hike the repo rate. This is the rate at which the central bank lends money to the banks.