Indian Rupee gained eight paise against the US dollar on Friday. The currency was trading at 95.71 against the dollar, compared to 95.79 in the previous trading session.
The RBI is widely expected to keep the repo rate unchanged at 5.25 per cent in its policy review. However, a section of market participants anticipates a possible hike of 25 basis points.
Kunal Sohani, Head of Treasury at Shinhan Bank, said, “We expect the RBI to keep rates unchanged while emphasising vigilance on inflation risks and maintaining adequate liquidity to ensure orderly market conditions.”
It is also expected that the RBI may introduce certain liquidity measures to support the rupee while making some changes to its forecasts on inflation and growth for the fiscal year 2027, as the situation continues to evolve in the Middle East.
“If RBI signals a cautious approach toward inflation and currency stability in today's policy, there is a high probability that the pair could gradually move back towards the Rs 95.00 - Rs 95.20 region in the near term,” Amit Pabari, Managing Director at CR Forex Advisors, said.
Investors and market participants will also look forward to the release of the FY26 GDP data later in the day, with a new base year.
Follow us
