MUMBAI: The rupee pared initial losses and appreciated 11 paise to close at 85.68 (provisional) against the US dollar on Friday, after the Reserve Bank cut repo rate by a higher-than-expected 50 basis points to prop up growth.
Forex traders said the rupee traded on a flat-to-positive note as the RBI surprised the market with a jumbo rate cut. Besides, the rate cut supported by a phased 100 basis points CRR reduction will lower the borrowing costs and boost growth.
Moreover, a surge in the domestic markets supported the rupee at lower levels with both the indices settling with gains of over 1 per cent.
