Market News
Rupee sidesteps RBI rate cut to end up but posts worst week in over 2 years - REUTERS
MUMBAI, Feb 7 (Reuters) - The Indian rupee strengthened on Friday after struggling for most of the week as global markets were jolted by fears of a trade war and foreign portfolio outflows persisted, pushing the rupee to its lifetime low past the 87 handle.
The Reserve Bank of India cut its key interest rate for the first time in nearly five years and signalled a less restrictive policy approach, seeking to provide stimulus to a sluggish economy.
Expectations that the Indian central bank will cut rates had also weighed on the rupee earlier in the week.
On the day, the currency rose about 0.2% to end at 87.4250 against the U.S. dollar. It declined by nearly 1% on the week though, its worst weekly performance since December 2022.
Asian currencies were mostly higher on Friday and the RBI likely intervened to support the rupee ahead of the policy decision.
