Rupee jumps to 62.39 per dollar; US govt shutdown weighs - NDTV

The rupee gained on Tuesday, with the currency finding some support from a lower-than-expected June quarter current account gap. The partially convertible rupee might come under pressure after the White House ordered government agencies to begin shutting down.

The shutdown could slow growth and spook investors worldwide.  Asian stocks pared gains and India's benchmark Sensex shed around 100 points after a positive start. Overnight, the Dow Jones Average in the US closed down 129 points, its seventh loss in eight sessions.

Hopes of a last minute resolution died after the Democratic-led Senate and Republican-controlled House refused to back down in a clash over scaling back President Barack Obama's landmark health care law as the price for essential federal funding.

The rupee rose to 62.39 to the dollar versus its Monday's close at 62.60/61. It traded at 62.45 per dollar as of 09.42 a.m.

India's current account deficit grew less than expected in the June quarter and is tipped to ease in coming months as a pick-up in exports and lower gold imports improve the trade balance, offering relief to the battered rupee.

(With inputs from Reuters)

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