Rupee
Rupee weakens following RBI repo rate cut — here’s what you need to know
Mumbai/IBNS: The Indian rupee gave up its early gains on Friday following the Reserve Bank of India’s decision to cut the repo rate by 25 basis points, media reports said.
The currency moved from 89.78 to an intraday high of 90.07 per US dollar after the rate reduction from 5.50% to 5.25%.
The rupee had touched a historic low of 90.42 against the US dollar on Thursday, raising concerns about the Indian economy.
The repo rate cut is aimed at making loans cheaper for borrowers amid a weakening rupee and to support economic activity, with retail borrowers expected to benefit from lower EMIs.
The move comes on the back of strong economic data, with India recording GDP growth of 8.2% in Q2, marking a six-quarter high.
Market analysts noted that the currency remains under pressure due to ongoing delays in India–US trade deal negotiations.
Existing US tariffs on Indian goods have further strained bilateral trade and slowed portfolio inflows.
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