Rate-cut boost: Rupee jumps 11 paise to 85.68 against dollar; market rally and CRR cut lift sentiment
The rupee appreciated by 11 paise to close at 85.68 against the US dollar on Friday, reversing early losses after the Reserve Bank of India (RBI) delivered a surprise 50 basis point repo rate cut and announced a phased 100 basis point reduction in the cash reserve ratio (CRR).
The local unit opened weak at 85.91, down 12 paise from the previous close of 85.79. But sentiment turned sharply positive after the RBI's unexpected rate action, which supported growth prospects and lifted domestic equities. The rupee touched an intra-day high of 85.66 and a low of 86 before settling higher, PTI reported.
"The rupee led the pack among Asian currencies, buoyed by the RBI's surprise 50 basis point rate cut.
This decisive, growth-driven policy move provided a significant boost to the local currency and fuelled optimism among domestic equity investors," said Dilip Parmar, Senior Research Analyst at HDFC Securities.
At the policy briefing, RBI Governor Sanjay Malhotra said the decision to move to a 'neutral' stance from 'accommodative' reflected a data-dependent outlook going forward. He added that the economy remained resilient, with foreign reserves strong enough to fund 11 months of imports and cover 96% of external debt.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Mistura chinesa faz cabelo crescer e homem fica irreconhecível
Resultados em 30 dias
Undo
The surprise CRR cut is expected to inject additional liquidity into the banking system, lowering borrowing costs and aiding credit transmission. Anurag Mittal, Head of Fixed Income at UTI AMC, called the move "pre-emptive and precise," noting that the central bank's intent to fast-track transmission was clear despite existing surplus liquidity.
The RBI retained its GDP growth forecast for FY25 at 6.5%.
Despite the rate-induced rally, analysts warned of external risks.
A rising dollar index, up 0.25% to 98.98, and weakening Asian currencies could limit further gains for the rupee. Brent crude futures slipped 0.26% to $65.17 per barrel.
'Any further rate cut by the RBI may also pressurise the rupee. However, a positive tone in the domestic markets may support the domestic currency at lower levels,' said Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan. He expects the USD-INR pair to trade between 85.40 and 86.25 in the near term.
Equity markets reflected the upbeat sentiment. The Sensex closed 747 points higher at 82,189, while the Nifty crossed the 25,000-mark to end at 25,003, up 252 points. Foreign institutional investors were net buyers, purchasing equities worth Rs 1,009.71 crore, exchange data showed.
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
21 minutes ago
- Time of India
Canada tables 'One Canadian Economy' Bill to boost domestic trade and infrastructure
Prime Minister Mark Carney 's government has introduced Bill C-5 , the "One Canadian Economy" bill, to dismantle interprovincial trade barriers and expedite the approval of major infrastructure projects. This legislative move seeks to unify Canada 's fragmented internal market and strengthen its economy amid escalating trade tensions with the United States. It was tabled after a first ministers' meeting in Saskatoon, during which Prime Minister Mark Carney, premiers, and territorial leaders discussed expediting major projects and interprovincial trade. The proposed legislation targets the elimination of federal obstacles to interprovincial trade and labor mobility. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Linda Kozlowski, 67, Shows Off Her Perfect Figure In A New Photo Today's NYC Undo Also Read: Canada Citizenship Bill addresses 'Lost Canadians' and First Generation Limit'; check features and eligibility Carney said that these internal barriers cost the Canadian economy approximately $200 billion annually. By aligning federal regulations with those of the provinces and territories, the bill will create a cohesive national market for the free movement of goods, services, and labor across Canada. Live Events 'With the 'One Canadian Economy' bill, we are aligning federal rules and regulations with those from the provinces and territories, helping to create one market, not 13,' Carney said on Friday, June 6. The Canadian Chamber of Commerce supported the initiative, noting that while it may not entirely counteract the effects of a trade war with the US, it represents a significant step toward internal economic integration. Matthew Holmes, the Chamber's chief of public policy, stated that eliminating exceptions to the Canadian Free Trade Agreement is a logical progression toward true free trade within Canada. Accelerating Nation-Building Projects In addition to addressing trade barriers, the bill proposes a streamlined process for approving major infrastructure projects deemed of national interest. The government plans to establish a federal office dedicated to expediting project approvals, potentially reducing timelines from up to a decade to just two years. Eligible projects would include those in the energy, mining, and transportation sectors, provided they offer significant economic and environmental benefits, such as carbon emission reductions and support for Indigenous communities. Respecting provincial governments' autonomy, Carney has assured that no projects will proceed without their consent. However, some provinces, including Alberta and British Columbia, have expressed differing views on specific projects. Responding to US Trade Pressures The introduction of the "One Canadian Economy" bill comes in the wake of increased US tariffs on Canadian exports. Carney has labeled these tariffs as "unlawful" and emphasized the need for Canada to bolster its domestic economy. Carney's approach includes engaging with the oil industry to balance environmental goals with economic growth. Also Read: Why bananas may soon be a luxury in America; Chiquita's layoffs in Panama hold the answer Discussions have centered around supporting new pipelines and carbon capture initiatives, aiming to position Canada as an energy leader while reducing reliance on U.S. markets. Legislative Outlook The government wants to pass the "One Canadian Economy" bill before Parliament's summer recess, though the timeline remains tight. As a minority government, the Liberals will need to garner support from opposition parties to ensure the bill's passage. The outcome will significantly influence Canada's economic strategy and its ability to navigate current and future trade challenges. This legislative effort represents a bold move toward unifying Canada's internal market and enhancing its economic sovereignty. If successful, it could pave the way for increased domestic trade, improved infrastructure, and a more resilient national economy.
News18
31 minutes ago
- News18
Bank Holiday Today: Are Banks Open Or Closed For Bakra Eid On June 07?
Bank Holidays In June 2025: The festival of Bakra Eid is being celebrated across India on June 07. Are banks open or closed today? Bank Holidays In June 2025: There's a question echoing in the minds of many today – will banks be closed on Friday, June 07, on account of Bakra Eid (Eid al-Adha)? With the festival being widely celebrated across India, many are curious to know whether banking services will be available or if a holiday has been declared in their state. Are Banks Open Today On Bakra Eid? The simple answer is no. The Bakrid holiday will be observed across the rest of the country on Saturday, June 7, followed by the regular weekly holiday on Sunday, June 8. Banks will be closed across the country on account of the Bakra Eid. As per the RBI's holiday list, banks will be open only in three cities: Ahmedabad, Gangtok, and Itanagar. Bank Holidays June 2025 List June 1 (Sunday) – Weekly Holiday – Banks closed in all states advetisement June 6 (Friday) – Eid-ul-Azha – Banks closed in Kerala June 7 (Saturday) – Bakrid (Eid-uz-Zuha) – Banks closed across the country June 8 (Sunday) – Weekly Holiday June 11 (Wednesday) – Sant Guru Kabir Jayanti / Saga Dawa – Banks closed in Himachal Pradesh and Sikkim June 14 (Saturday) – Second Saturday – Banks closed across the country June 15 (Sunday) – Weekly Holiday June 22 (Sunday) – Weekly Holiday June 27 (Friday) – Rath Yatra / Kang – Banks closed in Odisha and Manipur June 28 (Saturday) – Fourth Saturday – Banks closed in all states June 29 (Sunday) – Weekly Holiday June 30 (Monday) – Remna Ni – Banks closed in Mizoram During bank holidays, customers can continue to access services through net banking, mobile banking, UPI, and ATMs. While these digital platforms remain operational for transactions, cheque clearing and other physical banking activities governed by the Negotiable Instruments Act will not be processed on these days. About the Author Business Desk First Published: June 07, 2025, 08:24 IST
Time of India
32 minutes ago
- Time of India
India is a key strategic partner for Kazakhstan; DPM calls for increasing Indian FDI
Kazakhstan's Deputy Prime Minister and Foreign Minister Murat Nurtleu affirmed India's role as a key strategic partner and outlined a vision to triple bilateral trade, expand energy and digital cooperation, and invite Indian investment in infrastructure and innovation during the Central Asia–India Business Council meeting on June 5 in New Delhi. Nurtleu pointed to the potential to increase bilateral trade from $1 billion in 2024 to $3 billion in the near future and noted a 41% rise in Indian investments in Kazakhstan, which have exceeded $525 million, reported Kazakh Foreign Ministry 's press service. 'We consider this only as the beginning. Kazakhstan, as the largest economy in Central Asia and a transit hub between East and West, is ready to strengthen cooperation with India in areas such as trade, digital transformation, critical minerals, energy security, and humanitarian ties,' he said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Make Smarter Health Insurance Choices Search7 Learn More Undo Nurtleu identified transport and logistical connectivity as a key area for cooperation, emphasizing the importance of developing international corridors, notably the North – South route and the Trans-Caspian International Transport Route, or the Middle Corridor. He invited the Indian side to participate in joint infrastructure projects, including multimodal routes, fiber-optic lines, and regional energy grids. Kazakhstan also expressed its readiness to become a reliable supplier of strategic resources, including energy resources, rare earth metals, and agricultural products within the framework of India's Viksit Bharat (Developed India) initiative. Live Events Tourism was noted as another promising area, with 150,000 Indian tourists visiting Kazakhstan in 2024. Growth was driven by a 14-day visa-free regime and direct flights between Almaty and New Delhi. Kazakhstan also expressed readiness to support the opening of hotels and restaurants serving Indian cuisine in key cities. Nurtleu highlighted Kazakhstan's favorable investment climate, including a new 10-year 'golden visa' for investments over $300,000 and the role of the Astana International Financial Centre as a regional hub. He proposed hosting the next business council session in Kazakhstan, expressing confidence in concrete business outcomes.
