Mumbai 5 Aug : The Indian rupee gained 26 points during the trading session of the afternoon in the afternoon session.It was trading at 79.20 against the US dollar at 12.37 p.m.on Friday as compared to 79.46 close in the previous trading session.In the early morning trade the rupee was up by more than 50 paise however, as crude oil prices rise, the gains have decreased.
At the interbank exchange, the rupee started at 79.15 against the US dollar, and then climbed to 78.94 which was gains of 46 paise compared to the previous close in the trading day.
The rise in the local currency were on due to the combination of constant inflows from foreign investors as well as the decline in Brent crude oil prices.
In the meantime, the dollar index which measures the strength of the greenback versus the basket of six currencies, was at 105.75.
Brent crude oil prices were at $94.84 per barrel.It has increased in the morning, reaching more than $97 per barrel.
The RBI in its bi-monthly monetary policy, has increased the repo rates by 50 basis point to 5.40 percent to limit inflation.
In the end the rate for standing deposit facility was lowered to 5.25 per cent , and the marginal standing facility rate and bank rate was adjusted to 5.65 per cent.
The central bank has reaffirmed its the GDP and inflation forecasts at 7.2 percent and 6.7 percent for the current year’s financial year.
“With inflation forecast to be above the threshold of the upper limit in the second and third quarters The MPC stated that sustained high inflation could undermine inflation expectations and hamper growth in the long run.The MPC also concluded that a further, regulated withdrawal of the monetary accommodation is needed to stabilize inflation expectations and limit the effects of second-round inflation,” RBI Governor Shaktikanta Das stated.
