MUMBAI: The rupee, which opened on a positive note, gave up its initial gains and breached the psychological 90-to-a-dollar level after the Reserve Bank cut key benchmark interest rate for the first time in six months on Friday.

Forex traders said the Reserve Bank of India's (RBI) rate cut will push the rupee even lower until foreign portfolio investors return in a big way.

The RBI on Friday cut the key benchmark interest rate for the first time in six months and took steps to boost liquidity to support a "goldilocks" economy amid high US tariffs.

At the interbank foreign exchange market, the rupee opened at 89.85 against the US dollar and gained ground, touching 89.69 in morning deals, registering a 20-paise gain from its previous close.

After the RBI's monetary policy announcement,

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