Key facts
- The Indian rupee strengthened by 50 paise against the US dollar, reaching 95.24.
- The Reserve Bank of India (RBI) liberalized foreign portfolio investor (FPI) investment norms in government securities.
- The RBI maintained the repo rate at 5.25%.
- The central bank asserted robust forex reserves.
The Indian rupee saw a significant appreciation against the US dollar, rising by 50 paise to trade at 95.24. This strengthening followed the Reserve Bank of India's (RBI) decision to liberalize investment norms for foreign portfolio investors (FPIs) in government securities. The RBI also highlighted its robust foreign exchange reserves, which contributed to increased investor confidence. In addition to these measures, the central bank announced its decision to maintain the repo rate at 5.25% and provided updated projections for GDP growth and inflation. The liberalization of FPI norms is expected to attract more foreign capital into Indian government debt, thereby supporting the rupee.