Rupee gains in volatile trade after RBI's big cuts; ends higher at 85.64/$

The Indian Rupee was hit by volatility but strengthened on Friday, after the Reserve Bank of India (RBI) unleashed a barrage of liquidity to boost economic growth amid a fragile global macroeconomic situation. 

The domestic currency appreciated 16 paise to end at 85.64 against the greenback, after closing at 85.80 on Thursday, according to Bloomberg. During the session, the currency witnessed high volatility, with the unit sliding to the 86 mark against the dollar. 

The RBI's monetary policy committee (MPC) cut the repo rate by 50 basis points to 5.50 per cent, marking the third consecutive reduction in 2025. The central bank also cut the cash reserve ratio (CRR) by 100 basis points to 3 per cent, which is likely to infuse ₹2.5 trillion in the system. Further, the RBI also shifted its monetary policy stance from 'accommodative' to 'neutral'.