Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 95.48.
The rupee on Thursday closed 10 paise lower at 74.94 (provisional) against the US dollar after the Reserve Bank of India kept key policy rates unchanged and said it would continue with an accommodative stance.
RBI kept the benchmark lending rate unchanged at 4% for the 10th time in a row. The Monetary Policy Committee decided to keep the reverse repo rate unchanged at 3.35%.
At the interbank forex, the rupee opened at 74.90 against the US dollar, and later saw an intra-day high of 74.88 and a low of 75.05 against the greenback.
The local unit finally ended the day at 74.94, down 10 paise from its previous close of 74.84.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.01% lower at 95.48.
“After the rupee depreciated against the US dollar, the central bank surprised the market by keeping the rate unchanged as traders expected a hike in the reverse repo rate. RBI shunned global policymakers to ensure economic recovery in its soft tone. But Dilip Parmar, Research Analyst, HDFC Securities said.
Benchmark 10-year bond yields and the rupee declined, while domestic equities jumped in the absence of a hike in reverse repo – the rate at which it absorbs cash from banks.
“The spot USDINR is likely to consolidate in the range of 74.60 to 75.10 following mixed economic cues,” Mr. Parmar said.
On the domestic equity market front, the 30-share Sensex closed 460.06 points or 0.79% higher at 58,926.03, while the broader NSE Nifty ended 142.05 points or 0.81% higher at 17,605.85.
Global oil benchmark Brent crude futures rose 0.14% to $91.68 a barrel.
Foreign institutional investors remained net sellers in the capital markets on Wednesday as they sold shares worth Rs 892.64 crore, according to stock exchange data.
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