Mumbai: The rupee recovered 9 paise from its all-time low level to close at 87.50 against the US dollar on Friday after the Reserve
Bank of India reduced the key policy rate by 25 basis points in line with street expectations.
The Monetary Policy Committee (MPC), headed by RBI Governor Sanjay Malhotra, slashed the repo rate by 25 basis points to 6.25 per cent. This was the first reduction since May 2020 and the first revision after two-and-a-half years.
At the interbank foreign exchange, the rupee opened at 87.57, touched an intra-day high of 87.33 and a low of 87.57 against the greenback during the session.
The local unit finally settled for the day at 87.50 against the US dollar, registering a rise of 9 paise over its previous close.
On Thursday, the rupee plunged 16 paise to close at an all-time low of 87.59 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.04 per cent lower at 107.64.
The local unit has lost over 2 per cent so far this year. The sharp drop in the domestic unit comes after nearly a 3 per cent fall in the USD/INR pair in 2024, making it one of the worst-performing Asian
currencies.