Rupee gains some ground after breaching 74-mark
Economy

Rupee gains some ground after breaching 74-mark

Indian rupee which breached the record 74-mark against the US dollar today, finally closed lower 73.77 after a selling of dollars. It gained 40 paise after touching a high of 74.22 during the day.

The Reserve Bank of India’s holding of rates after raising them for two consecutive terms earlier created a ruckus in the stock market too with the Sensex losing 792.17 points and the Nifty 282.80 points.

The RBI’s changing of stand from ‘neutral’ to ‘calibrated tightening’ saw the rupee fall by 0.25 per cent from Thursday’s close of 73.58.

Contrary to expectation of a hike in rates, with some analysts seeing it to be 50 basis points, the RBI decision to hold rates could have a further negative effect. This was because a rate hike had been factored in and also as the central bank did not appear to show much concern for the falling rupee.

BSE Sensex was down by 2.2 per cent and Nifty by 2.6 per cent. There was heavy selling by FIIs and the Sensex had just four advances and 27 declines and Nifty eight advances and 42 declines.