Rupee Gains 9 Paise to 73.24 Ahead of RBI Monetary Policy Review

“Rupee extended its gains for the second successive session following a sharp surge in domestic and global equities. Volatility as such remained low ahead of the important RBI policy statement that will be released tomorrow,” Gaurang Somaiya, Forex & Bullion Analyst at Motilal Oswal Financial Services, said.

Expectation is that the central bank could keep rates unchanged but market participants will be keeping an eye on the stance that RBI adopts for inflation. “We expect USDINR (Spot) to quote in the range of 73.05 and 73.50, Somaiya commented. Sriram Iyer, Senior Research Analyst at Reliance Securities said that the rupee appreciated due to a decline in the dollar index. The dollar index was down 0.08 per cent against rivals this Thursday afternoon trade.

Lack of any major triggers kept the local currency in a narrow trading band on Thursday. Devarsh Vakil, Deputy Head Retail Research, HDFC Securities said that market participants are eyeing on RBI Monetary policy meeting outcome. “No change is expected in interest rates but guidance regarding future path of inflation and growth will remain in focus.”