INR Stays Weak Despite Firm Equities

Published on Dec 08, 2023 18:55

Indian Rupee saw continued muted trades and held near record low despite firm local equities. INR closed at flat at 83.40 per US dollar, down 3 paise on the day. The US dollar index is holding around 103.80, up marginally on the day after hitting a three week high yesterday as traders focus on the US nonfarm payrolls data due on Friday. The Reserve Bank of India on Friday decided to keep the policy rate unchanged at 6.5 per cent for the fifth time in a row as it maintains a tight vigil on inflation. The rate increase cycle was paused in April after six consecutive rate hikes, aggregating to 250 basis points since May 2022. Announcing the bi-monthly monetary policy, RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) unanimously decided to keep the repo rate unchanged at 6.5 per cent. A sharp surge of more than 2% in WTI Crude oil prices weighed on INR ahead of the weekend.