Mumbai, October 5: The Indian Rupee on Friday hit the 74-mark for the first time ever, falling further against the US Dollar after the Reserve Bank of India announced no change in the repo rate. The RBI, in its monetary policy, kept the repo rate unchanged at 6.50 per cent. Several economic experts saw it as a move that was not good for the current state that the markets were in. The Rupee touched a low of 74.0800 before beginning to recover.
While the Sensex and Nifty also initially reacted negatively with the BSE falling over 500 points and the NSE falling 200 points, the indices were soon seen recovering. Centre Cuts Fuel Prices: IOC, BPCL, HPCL Stocks Tank After Getting Downgraded by Goldman Sachs & Citigroup.
With economists earlier expecting a 0.25% hike in repo rate, the rupee had recovered 6 paise in the morning to 73.52 against the US dollar at the forex market.
The domestic currency closed at a record low of 73.58, down by 24 paise or 0.33 per cent on Thursday, marking its third straight session of losses.
The RBI policy came a day after the Centre announced a Rs 2.5 per litre cut in the prices of petrol and diesel. While the Centre cut excise duty on fuel by Rs 1.50 per litre, the Oil Marketing Companies (OMCs) also cut fuel price by Re 1 per litre.
(The above story first appeared on LatestLY on Oct 05, 2018 02:42 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).