Rupee appreciation after RBI's sharp rate increases

• Image Credit: Internet

• Aug 5, 2022 | Sourav Boruah

Digital Desk: The rupee increased as the RBI aggressively
increased rates by 50 basis points, reaching the highest level for its key
lending rate since 2019.

 The Reserve Bank of India aggressively increased rates by 50
basis points on Friday, pushing its benchmark lending rate to its highest level
since 2019. This resulted in a rise in the rupee.

The rupee was last trading at 79.2413 to the dollar, down from
its previous close of 79.4713. The rupee increased as the RBI aggressively increased
rates by 50 basis points, reaching the highest level for its key lending rate
since 2019.

 On Friday, the Reserve Bank of India
aggressively raised interest rates by 50 basis points, reaching the highest
level since 2019. The rupee increased as a result of this.

The rupee was last trading at 79.2413 to the
dollar, down from its previous close of 79.4713.

The rupee increased as the RBI aggressively increased rates by
50 basis points, reaching the highest level for its key lending rate since
2019. The Reserve Bank of India aggressively increased rates by 50 basis points
on Friday, pushing its benchmark lending rate to its highest level since 2019.
This resulted in a rise in the rupee.

According to RBI Governor
Shaktikanta Das, rather than being a result of the Indian economy's fragility,
the rupee's drop was mainly caused by the dollar's rise, a global trend.

But he warned that the Indian
economy has been grappling with high inflation, and price pressures are
expected to remain above 6 per cent this year.

The
MPC has decided to focus on withdrawal of accommodative policy stance to check
inflation, said the Governor.