The rupee has settled 8 paise higher at 73.16 against the US dollar on Friday as the Reserve Bank of India decided to keep the benchmark interest rate unchanged.
At the interbank forex market, the rupee opened at 73.21 against the American currency, gained some ground to touch an intraday highe of 73.09, but gave up some of its gains towards close.
On Thursday, the rupee closed at 73.24 against the US dollar.
Maintaining the status quo for the second time in a row, the Reserve Bank of India on Friday decided to keep the benchmark interest rate unchanged at 4 per cent but retained an accommodative stance, implying more rate cuts in the future if the need arises to support the economy hit by the Covid-19 crisis.
On the prices front, RBI Governor Shaktikanta Das said inflation is likely to ease to the projected target by the fourth quarter of this fiscal.
On the growth front, Das said gross domestic product (GDP) growth may break out of contraction and enter the positive zone by the fourth quarter of the current fiscal.