Rupee ends flat at 83.25 against the US dollar after RBI policy; posts second weekly loss in a row

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growth forecasts and slightly tweaked inflation projections. Rupee posted a weekly loss of 0.23%. Read RBI Policy Highlights here Earlier in the week, the 10-year US Treasury yield rose to a peak of 4.88%, pressuring currencies like the rupee.

But, RBI’s likely intervention supported the local unit at lower levels. The rupee was also pressured by local oil companies’ demand for the greenback and failed to gain despite some early weakness in the US dollar index on Friday, a foreign exchange trader at a state-run bank told Reuters. “We are on a thin edge, just need a trigger," said Arnob Biswas, head of foreign exchange research at SMC Global Securities, referring to the rupee continuing to hover close to record low levels.

The rupee hit its lifetime low of 83.29 in October 2022. (Exciting news! Mint is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest financial insights! Click here!) Investors will await the US non-farm payrolls report and the unemployment rate due later on Friday, which could provide further cues on US Federal Reserve policy. Meanwhile, crude oil prices traded higher.

Brent futures rose 0.29% to $84.31 a barrel, having fallen over 11% this week, while US West Texas Intermediate (WTI) crude gained 0.40% to $82.64 a barrel. On the domestic front, the Indian stock market indices ended higher on Friday, extending their gains into the second consecutive session, after the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) maintained a status quo on repo rates and policy stance, in line with expectations. The Sensex closed 364.06 points, or 0.55%, higher at 65,995.63, while Nifty 50 ended at 19,653.50, up 107.75 points, or 0.55%.