Currency Buzz: INR Appreciates On RBI Rate Hike

4 May 2022 , 05:00 PM

The Indian rupee appreciated 8 paise to settle at 76.40 (provisional) against the US dollar on Wednesday following RBIs surprise rate hike ahead of the US Federal Reserves policy decision. At the interbank forex market, the domestic unit opened at 76.46 against the US dollar. It moved in the range of 76.17 to 76.58 during the session. The rupee finally closed at 76.40, registering a rise of 8 paise over its previous close. On Monday, the rupee had settled at 76.48 against the US dollar. The forex market was closed on Tuesday on account of Id-Ul-Fitr.

The RBI on Wednesday after an unscheduled MPC meeting hiked the benchmark lending rate by 40 basis points (bps) to 4.40 per cent to contain inflation that has remained stubbornly above the target of 6 per cent for the last three months. The Monetary Policy Committee (MPC) headed by RBI Governor Shaktikanta Das also raised the level of deposits banks are required to maintain as cash reserve by 50 bps to 4.5 per cent to suck out Rs 87,000 crore of liquidity from the banking system. The CRR hike will be effective from May 21.

Powered by Commodity Insights