Rupee strengthens to 64.97

The rupee strengthened to 64.97 as the RBI's Monetary Policy Committee decision of keeping the repo rate unchanged at 6.0 per cent was on expected lines.

The rupee sentiment was buoyed as the RBI's Monetary Policy Committee has lowered its inflation projections for the coming fiscal.

The domestic unit opened strong by 13 paise to 65.02 against the dollar at the interbank foreign exchange market today. It hovered in a range of 65.13 and 64.94, before ending at 64.97, up 18 paise.

Yesterday, the rupee fell 14 paise to end at 65.15 against the US dollar. The

S&P BSE Sensex ended higher by nearly 580 points and the Nifty50 closed above the 10,300 level on brisk short-covering after RBI's policy decision.

In the overseas market, the dollar rose to a two-week high against a basket of major currencies after a late recovery by US equities helped the currency recover as investors reassessed the danger a trade war between the China and the United States.