The Indian rupee advanced against the U.S. dollar in morning deals on Friday, after India’s central bank decided to keep its key interest rates unchanged, as expected.
The Monetary Policy Committee of the Reserve Bank of India unanimously voted to maintain the policy repo rate at 4.00 percent. The reverse repo rate was retained at 3.35 percent.
The Marginal Standing Facility, or MSF rate, and the Bank rate were also left unchanged at 4.25 percent.
Governor Shaktikanta Das said the MPC also unanimously decided to continue with the accommodative monetary policy stance as long as necessary at least to the current financial year and in the next year to revive growth.
The rupee rose to 72.93 against the greenback from an early 2-day low of 73.06. Next likely resistance for the rupee is seen around the 70.00 level.