Anna 
Throughout the week, the Indian rupee experienced subtle fluctuations as traders eagerly awaited the Reserve Bank of India’s (RBI) monetary policy announcement. On Friday, the currency displayed strength, appreciating by two paise to reach 83.34 against the US dollar, driven by positive equity trends. Analysts at Finrex Treasury Advisors indicated that the rupee is poised for narrow fluctuations, given the equilibrium between inflows and outflows.
In contrast, Thursday witnessed the rupee settling at 83.36 against the dollar, a consequence of substantial share sales by Foreign Institutional Investors (FIIs), totaling ₹1,564.03 crore (INR 100 crore ≈ USD 12 million).
The Monetary Policy Committee (MPC), under the leadership of Governor Shaktikanta Das, commenced discussions on Wednesday amid expectations of unchanged interest rates. This scenario unfolded against the backdrop of a marginal uptick in the dollar index to 103.59 and an escalation in Brent crude oil prices to $75.31 per barrel.
The positive market response was evident as the BSE Sensex surged by over 229 points, and the NSE Nifty recorded a gain of around 70 points. In the preceding session, the rupee had strengthened by five paise on Wednesday, settling at 83.32, a move supported by the RBI’s proactive measures to maintain crucial exchange rate thresholds.
Market participants are closely tracking the outcome of the RBI’s policy review, anticipating repercussions for both domestic equities and the broader forex market. Concurrently, Brent crude oil prices, which had experienced a dip to a six-month low of $74.63 per barrel on Thursday, traditionally act as a support for the rupee against robust international currencies like the US dollar.
