Rupee appreciated by 81 paise to 74.35 against the US dollar
The Indian rupee appreciated by 81 paise to 74.35 against the US dollar in intra-day trade on Friday, after the Reserve Bank announced various measures including a 75 basis point cut in repo rate to support the economy amid the coronavirus-induced crisis.
The Reserve Bank of India (RBI) on Friday cut benchmark interest rate by 75 basis points to 4.4 percent. The central bank also reduced the cash reserve ratio (CRR) of all banks by 100 basis points to 3 percent with effect from March 28 for 1 year.
RBI Governor Shaktikanta Das said all instruments -- conventional and unconventional -- are on the table to support financial stability and revive growth and noted that Rs 3.74 lakh crore liquidity will be injected into the system through various measures announced on Friday.
Forex traders welcomed the RBI initiatives and said the measures showed that the central bank is willing to take steps to fight the Covid-19 pandemic.