The rupee on Friday opened 7 paise higher at 69.19 against the US dollar on account of some selling in American currency by banks and importers. 

The local currency on Thursday recouped most of its early losses and closed almost flat at 69.26 after the Reserve Bank in a widely expected move cut key interest rates by 25 basis points. 

With a view to boost the sagging economy, the central bank lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts. 

The MPC said a sharp slowdown in investment activity along with a continuing moderation in private consumption growth is a matter of concern. The central bank lowered its growth forecast to 7 per cent from 7.2 per cent for FY20. It also lowered its inflation forecast to 3-3.1 per cent for first half of 2019-20 and to 3.4-3.7 per cent for second half of 2019-20. 

Overall the commentary was dovish but reaction on the rupee was quite muted. 

“Today, USDINR pair is expected to quote in the range of 69.20 and 69.90,” brokerage firm Motial Oswal Financial Services said. 

Published On : 07-06-2019

Source : Economic Times