The rupee strengthened to 66.88 as the RBI’s Monetary Policy Committee decided to hike its key policy rate, the repo rate, by 25 basis points to 6.25 per cent, in its second bi-monthly meeting for the fiscal. This was its first hike in four-and-half-years.
Dealers said besides fresh selling of dollar by exporters, the dollar’s weakness against some currencies overseas amid lingering concerns about global trade supported the rupee.
The domestic unit opened strong by 6 paise at 67.09 at the interbank forex market today. It hovered in a range of 67.18 and 66.88 before ending at 66.93, up 22 paise at 5 pm local time.
Yesterday, the rupee had shed 4 paise to end at 67.15 against the US dollar. The benchmark BSE Sensex ended at 35,178.88, up 275.67 points, or 0.79 per cent as the RBI has retained the GDP growth forecast for FY19 at 7.4 per cent.