Mumbai, 6/4: The rupee pared initial losses and settled 2 paise lower at 81.92 (provisional) against the US dollar on Thursday after the RBI decided to keep the key benchmark policy rate at 6.5 per cent.
Forex traders said the Indian rupee witnessed volatility after the Reserve Bank of India (RBI) surprised the market by pausing the rate hike.
At the interbank foreign exchange, the domestic unit opened weak at 81.95 against the dollar, and finally ended the day at 81.92 (provisional), 2 paise lower from its previous close. On Wednesday, the rupee gained 42 paise to close at 81.90 against the US dollar.
The Reserve Bank of India (RBI) on Thursday decided to keep the key benchmark policy rate at 6.5 per cent even as inflation is trending above its tolerance level. The rate hike has been paused after six consecutive rate increases aggregating to 250 basis points since May 2022