Rupee ends flat at 82.57 a dollar after RBI Monetary Policy
1 min read 08 Jun 2023, 09:12 AM ISTThe US dollar index hovered near three-month highs after a surprise rate hike from the Bank of Canada suggested other central banks, including the US Federal Reserve, could maintain a hawkish stance when policymakers meet next week.
PremiumThe Indian rupee ended mostly flat against the US dollar on Thursday after the Reserve Bank of India (RBI) maintained status quo in its by-monthly monetary policy for June. The local unit ended at 82.57 a dollar, marginally lower by 1 paisa, against the previous close of 82.55.
The RBI's Monetary Policy Committee headed by Governor Shaktikanta Das delivered a ‘hawkish pause’ as it kept the repo rate unchanged at 6.50%, but hinted that one should not expect a rate cut soon, flagging inflation concerns.
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The US dollar index hovered near three-month highs after a surprise rate hike from the Bank of Canada suggested other central banks, including the US Federal Reserve, could maintain a hawkish stance when policymakers meet next week, Reuters reported.
Meanwhile, crude oil prices traded reserved losses to trade higher. Brent crude futures gained 0.31% to $77.19 a barrel, while the US West Texas Intermediate crude futures rose 0.37% at $72.80 a barrel.
On the domestic front, the Indian equity benchmark indices erased early gains to end lower as the RBI hinted at a tighter monetary conditions for some time on fears of inflation staying above the central bank's 4% target this year.
The Sensex fell 294.32 points, or 0.47%, to close at 62,848.64, while the Nifty ended 91.85 points, or 0.49%, lower at 18,634.55.
On Wednesday the Foreign Institutional Investors (FII) bought Indian shares worth ₹1,382.57 crore, while the Domestic Institutional Investors (DI) purchased shares worth ₹392.30 crore, as per the data on exchanges.
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