The Indian rupee declined 8 paise to close provisionally at 72.99 against the US dollar on Friday, with forex market participants weighing RBI policy measures aimed at lowering the COVID-19 impact on the economy.

At the interbank forex market, the local unit opened on a weak note at 73.00 against the greenback and witnessed an intra-day high of 72.95 and a low of 73.13. It finally ended at 72.99, registering a fall of 8 paise over its previous closing. On Thursday, the rupee had settled at 72.91 against the US dollar.

The RBI on Friday decided to leave the benchmark interest rate unchanged at 4  percent but maintained an accommodative stance amid the second COVID wave.

RBI Governor Shaktikanta Das said the Monetary Policy Committee (MPC) voted unanimously for keeping the interest rate unchanged and decided to continue with its accommodative stance as long as necessary to support growth and keep inflation within the target.

Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01  percent to 90.51. Brent crude futures, the global oil benchmark, rose 0.49  percent to USD 71.66 per barrel.

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