<p>Mumbai: The rupee consolidated in a narrow range and settled lower by 2 paise to 83.38 (provisional) against the US dollar (USD) on Friday after the Reserve Bank of India (RBI) kept the policy rate unchanged at 6.5 per cent.</p><p>Forex traders said stronger American currency in the overseas markets and a rebound in crude oil prices weighed on investor sentiment.</p><p>At the interbank foreign exchange market, the local unit opened at 83.35 and finally settled at 83.38 (provisional) against the dollar, down by 2 paise from its previous close.</p><p>On Thursday, the rupee depreciated 4 paise to close at 83.36 against the US dollar.</p><p>However, positive tone of the RBI Governor and positive domestic markets may support the rupee, traders said.</p><p>The six-member Monetary Policy Committee, consisting of three RBI and an equal number of external members, voted unanimously to keep the benchmark repurchase rate at 6.5 per cent.</p>.RBI retains FY24 retail inflation forecast at 5.4%; food prices situation uncertain.<p>All but one of the panel members voted to keep the policy stance at "withdrawal of accommodation" in signs that rates may remain higher for longer.</p><p>The central bank raised its forecast for economic growth to 7 per cent from 6.5 per cent.</p><p>The governor also highlighted that "over-tightening" can also pose growth risks to the economy, and emphasised that it is not a signal that the policy stance was moving towards neutral.</p><p>The Indian rupee closed on a flat note after the Reserve Bank of India kept the policy rate unchanged, as per the market expectations, said Dilip Parmar, Research Analyst, HDFC Securities.</p><p>The rupee remained resilient to external shocks amid better macro environment, sustainable forex reserves and foreign fund inflows.</p><p>"We believe spot USDINR is expected to further consolidate in the coming days and wait for the US Fed policy decision for a clear directional move," Parmar added.</p>.Making rupee a global currency is a long haul.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.23 per cent higher at 103.78.</p><p>Brent crude futures, the global oil benchmark, advanced 2.27 per cent to $75.73 per barrel.</p><p>On the domestic equity market front, Sensex advanced 303.91 points, or 0.44 per cent, to settle at 69,825.60 points. The Nifty advanced 68.25 points, or 0.33 per cent, to 20,969.40 points.</p><p>Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,564.03 crore, according to exchange data.</p>
<p>Mumbai: The rupee consolidated in a narrow range and settled lower by 2 paise to 83.38 (provisional) against the US dollar (USD) on Friday after the Reserve Bank of India (RBI) kept the policy rate unchanged at 6.5 per cent.</p><p>Forex traders said stronger American currency in the overseas markets and a rebound in crude oil prices weighed on investor sentiment.</p><p>At the interbank foreign exchange market, the local unit opened at 83.35 and finally settled at 83.38 (provisional) against the dollar, down by 2 paise from its previous close.</p><p>On Thursday, the rupee depreciated 4 paise to close at 83.36 against the US dollar.</p><p>However, positive tone of the RBI Governor and positive domestic markets may support the rupee, traders said.</p><p>The six-member Monetary Policy Committee, consisting of three RBI and an equal number of external members, voted unanimously to keep the benchmark repurchase rate at 6.5 per cent.</p>.RBI retains FY24 retail inflation forecast at 5.4%; food prices situation uncertain.<p>All but one of the panel members voted to keep the policy stance at "withdrawal of accommodation" in signs that rates may remain higher for longer.</p><p>The central bank raised its forecast for economic growth to 7 per cent from 6.5 per cent.</p><p>The governor also highlighted that "over-tightening" can also pose growth risks to the economy, and emphasised that it is not a signal that the policy stance was moving towards neutral.</p><p>The Indian rupee closed on a flat note after the Reserve Bank of India kept the policy rate unchanged, as per the market expectations, said Dilip Parmar, Research Analyst, HDFC Securities.</p><p>The rupee remained resilient to external shocks amid better macro environment, sustainable forex reserves and foreign fund inflows.</p><p>"We believe spot USDINR is expected to further consolidate in the coming days and wait for the US Fed policy decision for a clear directional move," Parmar added.</p>.Making rupee a global currency is a long haul.<p>Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.23 per cent higher at 103.78.</p><p>Brent crude futures, the global oil benchmark, advanced 2.27 per cent to $75.73 per barrel.</p><p>On the domestic equity market front, Sensex advanced 303.91 points, or 0.44 per cent, to settle at 69,825.60 points. The Nifty advanced 68.25 points, or 0.33 per cent, to 20,969.40 points.</p><p>Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday as they offloaded shares worth Rs 1,564.03 crore, according to exchange data.</p>