Mumbai, June 5 (UNI) Rupee on Friday appreciated by 16 paise to close at 85.63 on weak demand for US Dollar by bankers and importers, a forex trader said.

Rupee opened at 85.91, registering a fall of 12 paise over its previous close, but soon pared the losses and saw a high of 85.632 against the greenback. Rupee recorded a day low of 85.99, a dealer added.

The rupee pared initial losses in morning trade on Friday, after the Reserve Bank cut repo rate by a higher-than-expected 50 basis points to prop up growth.

Forex traders said the latest RBI monetary policy has an all-round focus, it maintained growth momentum, by cutting rates by 50 bps, liquidity infusion by cutting CRR by 100 bps over the year, and targeting inflation at 3.7 per cent.

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