Rupee strengthens ahead of RBI decision, trades above 79 per dollar

The rupee firmed ahead of a central bank monetary policy decision on Friday, supported by overnight weakness in oil prices and the US dollar.

The domestic currency rose 46 paise to 78.94 against the US dollar in early trade.

Given the sharp rise in volatility yesterday, trading ranges could remain high, said Anand James - Chief Market Strategist at Geojit Financial Services. Favoured view expects pullback attempts to be held within the 79.2-79.5 vicinity followed by a consolidation, he added.


Markets are keenly awaiting the Reserve Bank of India's policy decision at the end of a three-day meeting, where it's widely expected to increase its key interest rate from anywhere between 25 basis points and 50 basis points.

The equity markets also traded on a firm note, with Sensex and Nifty back in the green after a one-day break.

(With inputs from agencies)