Rupee ends higher against dollar as RBI hikes repo rate

Indian rupee ended significantly higher against dollar on Friday as RBI raised repo rate to rein in inflation. Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has raised repo rate by 50 basis points (bps) to 5.90 percent in a bid to check inflation, which has remained above its tolerance level for the past 8 months. Sentiments were also upbeat with Union Minister Piyush Goyal’s statement that India will be the pillar of the global economic revival as it exhibited steady growth and emerged as the fastest-growing country among large economies of the world. Additional support also came as Economic Affairs Secretary Ajay Seth said India’s economic recovery remains on course, supported by key structural reforms, despite exogenous shocks and challenges. On the global front, sterling rose on Friday moving close to levels last seen before the new government's so-called mini budget a week ago sent the currency to a record low against the U.S. dollar.

Finally, the rupee ended at 81.49 (Provisional), stronger by 24 paisa from its previous close of 81.73 on Thursday. The currency touched a high and low of 81.69 and 81.17 respectively.