Indian rupee depreciated against the US dollar on Friday despite Reserve Bank of India’s Monetary Policy Committee (MPC) has reduced the benchmark repo rate by 25 bps to 5.25 per cent. Traders overlooked the report that the Reserve Bank of India has unveiled two major liquidity measures -- OMO purchase and USD/INR buy-sell swap -- to inject liquidity into the banking system. Besides, Reserve Bank of India’s MPC revised India’s GDP forecast for FY2025-26 upwards to 7.3%, compared with the earlier estimate of 6.8%. On the global front, ringgit extended its gains to close marginally higher against the greenback on Friday, as expectations of an interest rate cut next week by the US Federal Reserve (Fed) stayed elevated.

Finally, the rupee ended at 89.95 (Provisional), depreciated by 5 paise from its previous close of 89.90 on Thursday. The currency touched a high and low of 90.06 and 89.69 respectively.