Rupee surges 16 paise to 74.78 against US dollar ahead of RBI policy decision

The rupee appreciated 16 paise to 74.78 against the US dollar in opening trade on Thursday ahead of the Reserve Bank of India's monetary policy decision. At the interbank forex market, the domestic unit opened strong at 74.82 against the US dollar, gained further ground and touched 74.78 against the US dollar, registering a gain of 16 paise over its previous close. It had settled at 74.94 against the US dollar on Wednesday. Forex traders said investor focus will be on the RBI monetary policy, scheduled for later in the day.

"A 25 bps cut is widely anticipated. More than the cut, the tone of the policy statement and regulatory measures to facilitate transmission would be in focus," said Abhishek Goenka, Founder and CEO, IFA Global.

Besides, positive trend in the equity markets and weak American currency also supported the rupee, traders said. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12 per cent to 92.75. On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 213.30 points higher at 37,876.63 and broader NSE Nifty advanced 63 points to 11,164.65. Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 60.18 crore on Wednesday, according to provisional exchange data. Brent crude futures, the global oil benchmark, rose 0.22 per cent to USD 45.27 per barrel.