An Indian man displays new 2000 rupee notes outside the Reserve Bank of India (RBI) in Mumbai on November 10, 2016.
Long queues formed outside banks in India as they reopened for the first time since the government's shock decision to withdraw the two largest denomination notes from circulation. / AFP PHOTO / PUNIT PARANJPE
An Indian man displays new 2000 rupee notes outside the Reserve Bank of India (RBI) in Mumbai on November 10, 2016. Long queues formed outside banks in India as they reopened for the first time since the government's shock decision to withdraw the two largest denomination notes from circulation. / AFP PHOTO / PUNIT PARANJPE

Mumbai: The rupee opened marginally higher and touched 69.21 against the US dollar in opening trade on Friday, after the Reserve Bank cut key interest rates by 0.25 percentage point.

To boost the sagging economy, the RBI Thursday lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts.

Forex traders said investors welcomed the RBI policy decision as this would help to boost the slowing economy.

The rupee opened at 69.23 the interbank forex market then gained further ground to touch 69.21 per dollar amid positive opening in domestic equities, displaying gains of 7 paise against the greenback.

On Thursday, the rupee had settled at 69.28 against the US dollar.

Meanwhile, foreign fund inflows, higher crude oil prices and lower opening in domestic equities weighed on the domestic currency and restricted the upmove.

Foreign funds pulled out Rs 1,448.99 crore in the capital markets on a net basis on Thursday, provisional data showed.

The benchmark BSE Sensex opened on a cautious note and was trading lower by 43.75 points or down 0.11 per cent to quote at 39,485.97. while the NSE Nifty was trading at 11,827.95, down 15.80 points, or 0.13 per cent.

Meanwhile, brent crude, the global benchmark, was trading at 62.53 per barrel higher by 1.39 per cent.

(For all the latest News, Mumbai, Entertainment, Cricket, Business and Featured News updates, visit Free Press Journal. Also, follow us on Twitter and Instagram and do like our Facebook page for continuous updates on the go)

Free Press Journal

www.freepressjournal.in