Rupee falls 5 paise to close at 89.94 against US dollar after RBI cuts repo rate
Mumbai (PTI): The rupee on Friday gave up its initial gains and settled for the day lower by 5 paise at 89.94 (provisional) against US dollar, after the Reserve Bank cut key benchmark interest rate for the first time in six months.
Forex traders said the Reserve Bank of India's (RBI) rate cut will weigh on the rupee, but RBI's decision to purchase government bonds worth up to Rs 1 lakh crore through open market operations (OMO), combined with a USD 5 billion buy-sell swap, will support the local currency.
At the interbank foreign exchange market, the rupee opened at 89.85 against the US dollar and gained ground, touching 89.69 in morning deals, registering a 20-paise gain from its previous close.
After the RBI's monetary policy announcement, the rupee lost ground and fell to 90.06 against the American currency, a 16-paise decline from its previous close of 89.89. The currency is down almost 5 per cent against the dollar this year, the worst performer in Asia.
The local unit finally settled for the day lower by 5 paise at 89.94 (provisional) against the American currency.
"Beyond the rate cut, RBI's decision to purchase government bonds worth up to Rs 1 lakh crore through OMO, combined with a USD 5 billion buy-sell swap, marks a decisive effort to restore durable liquidity and stabilize currency markets after the rupee's sharp depreciation," said Sachin Bajaj, Executive Vice President & Chief Investment Officer, Axis Max Life Insurance.
The RBI on Friday cut the key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a "goldilocks" economy amid high US tariffs.
Reserve Bank Governor Sanjay Malhotra said the central bank does not target any band for the rupee in the forex market, and allows the domestic currency to find its own correct level.
"We don't target any price levels or any bands. We allow the markets to determine the prices. We believe that markets, especially in the long run, are very efficient. It's a very deep market," he said while replying to a question on rupee depreciation at a post-monetary policy press meet.
Malhotra said fluctuations in the market keep occurring, and the RBI's effort is always to reduce any abnormal or excessive volatility. "And that is what we will continue to endeavour," he added.
In its bi-monthly monetary policy, the RBI announced three-year USD/INR Buy Sell swaps of USD 5 billion this month. When asked if this is aimed at checking rupee depreciation, Malhotra said, "It is a liquidity measure. It is not to support the rupee".
The governor further said the country has sufficient foreign exchange reserves and that the current account is manageable, and that, given the strong fundamentals of the economy, the country should witness strong capital flows going forward.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.03 per cent lower at 98.96.
Brent crude, the global oil benchmark, rose 0.02 per cent to USD 63.27 per barrel in futures trade.
On the domestic equity market front, Sensex jumped 447.05 points to settle at 85,712.37, while the Nifty climbed 152.70 points to 26,186.45.
Foreign institutional investors sold equities worth Rs 1,944.19 crore on a net basis on Thursday, according to exchange data.
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Smriti Mandhana named BBC Indian Sportswoman of the Year for 2025
New Delhi (PTI): Star batter Smriti Mandhana, who played a pivotal role in India's historic 2025 Women's World Cup triumph, was named the BBC Indian Sportswoman of the Year for 2025 at a glittering function here on Monday.
Chess prodigy Divya Deshmukh won the Emerging Player of the Year award, for her historic FIDE Women's World Cup triumph at just 20.
Preethi Pal was named the Para-Sportswoman of the Year, for winning two bronze medals at the 2024 Paris Paralympics in track and field, while Anjali Bhagwat was honoured with the Lifetime Achievement Award, recognising her pioneering career as India's first woman shooter to reach an Olympic final and her trailblazing success on the world stage.
Mandhana, who is currently touring Australia with the Indian team for multi-format bilateral assignments, said in a video message: "Thank you BBC for giving me the awardfor Best Sportswoman of the Year. 2025 was a special year for women's cricket, especiallytowards the end we had a World Cup and I'm happy I could contribute and help India win matches.".
At 29, the left-handed batter is already among the game's greats, with the second-highest number of centuries in women's One Day Internationals and ranking third in total runsscored among current players worldwide.
Hailing from Sangli city in Maharashtra, the affable Mandhana was inspired by her father and brother, both of whom played cricket at the district level.
In September last year, she made a 50-ball hundred against Australia – the fastest 50 over international ton (men and women) by an Indian in the format, breaking Virat Kohli's record.
The award winners were decided by a distinguished grand jury comprising Leander Paes, Deepa Malik, and Anju Bobby George.
Praising the athletes' achievements CEO of BBC News, Jonathan Munro said: "Congratulations to this year's winners who showcase the very best in sporting excellence. The BBC World Service is committed to bringing such stories of human endeavour and outstanding success to audiences across India and around the world.".
Additionally, the ceremony also celebrated a wide spectrum of talent and impact, recognizing star performers and changemakers for redefining the landscape of Indian sport.
BBC Star Performers of the Year 202.
• Indian Women's Cricket Team: for their historic World Cup victory.
• Ekta Bhyan, Deepthi Jeevanji and Preethi Pal: for their trailblazing performances at the World Para Athletics Championship.
• Indian Women's Cricket Team for the Blind: for their inspiring World Cup victory.
• Indian Women's Kabaddi Team: for their smashing victory in World Cup.
.
BBC Changemakers of the Year 202.
• Indian Women's Ice Hockey Team: for breaking barriers in a non-traditional sport.
• Rajbir Kaur: Indian field hockey player and former captain of the women’s national team.
• Savita Punia: Indian field hockey player and current member of the national team.
• Paani Devi: recognised for her impactful contribution to grassroots sport.
