Rupee pares most early losses post RBI rate cut

Mumbai, Jun 6 (PTI) The rupee pared most of its early morning losses and was trading marginally down by 5 paise at 69.31 against the American currency, after the Reserve Bank of India cut its repo rate by 0.25 per cent Thursday.

The rupee had opened on a weak note at 69.41 at the interbank forex market and then fell further to 69.45 vs the USD. Following the RBI's Monetary Policy Committee (MPC) decision, the local currency recovered most of the lost ground.

The domestic currency was trading at 69.31 at 1248 hrs, down 5 paise over its last close.

The rupee had settled at 69.26 against the US dollar Tuesday.

Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr.

Forex traders said, foreign fund outflows and rising crude oil prices also kept pressure on the Indian rupee. Moreover, heavy selling in domestic equities also weighed on the local unit.

Brent crude futures, the global oil benchmark, rose 0.28 per cent to USD 60.80 per barrel.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out ₹ 416.08 crore Tuesday, as per provisional data.

Meanwhile, the 30-share index was trading 333.32 points, or 0.83 per cent, lower at 39,750.22, and the broader Nifty fell 114.35 points, or 0.95 per cent, to 11,907.30.