Rupee trading on flat note after RBI monetary policy decision

Mumbai: The rupee was trading on a flat note after the Reserve Bank of India (RBI) on Thursday decided to keep policy rate unchanged for the sixth time in a row to maintain a tight vigil on inflation.

At the interbank foreign exchange, the rupee opened at 82.94 against the dollar and was trading at 82.96 against the greenback, unchanged from its previous close, as the central bank retained the repo rate at 6.5 pc for the sixth consecutive time.

On Wednesday, the rupee appreciated 9 paise to close at 82.96 against the dollar.

Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das on Thursday said the Monetary Policy Committee (MPC) will remain watchful of food inflation so that the benefits gained are not frittered away.

The RBI on Thursday projected a Gross Domestic Product (GDP) growth of 7 per cent for 2024-25, which is lower than the 7.3 per cent expansion estimated for the current fiscal.

Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said rural demand continues to gather pace, urban consumption remains strong and investment cycle is gaining steam on the back of increased capex.

Das said there are signs of revival in private investments.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.05 per cent lower at 104.

Brent crude futures, the global oil benchmark, rose 0.30 per cent to USD 79.45 per barrel.

In the domestic equity market, the 30-share BSE Sensex was trading at 307.55 points, or 0.43 per cent lower, at 71,844.45 points. The broader NSE Nifty declined 89.75 points, or 0.41 per cent, to 21,840.75 points after the RBI monetary policy decision.

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Wednesday as they offloaded shares worth Rs 1,691.02 crore, according to exchange data.