Ahead of the outcome of the RBI policy, the Indian rupee increases 46 paise to 78.94 against the US dollar

In early trading on Friday, the rupee strengthened 46 pence to 78.94 against the US dollar in anticipation of the conclusion of the Reserve Bank of India's policy meeting.

At the interbank foreign exchange, the rupee touched 78.94 versus the dollar after starting the day at 79.15, up 46 paisa from the previous close.

The rupee lost 25 paise on Thursday, falling to 79.40 against the dollar at the end. In early transactions, the local currency saw an early high of 78.94 and a low of 79.17 in relation to the US dollar.

The local currency appreciated as a result of ongoing foreign capital inflows into the capital markets and falling crude oil prices. The dollar index, which measures the value of the dollar against a basket of six different currencies, increased 0.14 percent to 105.84.

Benchmark Brent crude futures increased 0.22% to USD 94.33 a barrel of oil. According to exchange data, foreign institutional investors continued to be net purchasers on Thursday, buying shares worth Rs. 1,474.77 crore.

The 30-share Sensex was up 220.47 points, or 0.38 percent, to 58,519.27 on the domestic equity front, while the larger NSE Nifty was up 59.25 points, or 0.34 percent, to 17,441.25. To control excessive retail inflation, the RBI may decide to raise its policy rate for a third time in a row by at least 35 basis points.

The central bank has previously declared that it will gradually change its stance on monetary policy to one that is more accommodating. Later in the day, the Monetary Policy Committee, which determines interest rates for the Reserve Bank of India, will make its bimonthly review announcement.