The Indian rupee recorded a strong recovery on Friday, appreciating 81 paise to close at 94.93 per US dollar (provisional) following the Reserve Bank of India's monetary policy announcement.

Market participants welcomed the RBI's measures aimed at supporting foreign capital inflows and enhancing forex market liquidity, which helped improve investor sentiment. Traders also drew confidence from the central bank's assessment that India's foreign exchange reserves remain robust and provide a strong buffer against external shocks.

The RBI reported that the country's forex reserves stand at USD 682.3 billion, offering import cover for around 11 months, reinforcing confidence in India's external sector stability.

Meanwhile, the Monetary Policy Committee (MPC) kept the repo rate unchanged at 5.25% for the second consecutive meeting while maintaining a neutral policy stance amid concerns over higher energy prices and supply disruptions linked to the ongoing West Asia conflict.