Rupee opens higher as deficit concerns ease - Livemint

Mumbai: The Indian rupee on Tuesday opened higher against the dollar on lower-than-expected current account deficit numbers in the June quarter.

Dealers said the financial markets had factored in a rise in India's current account deficit (CAD) in the first quarter of the current fiscal year, but is optimistic that CAD will come down in the approaching quarters.

The rupee opened at 62.5350 per dollar against its Monday's close of 62.6175.

On Thursday, data released by the Reserve Bank of India (RBI) showed that CAD rose to 4.9% of gross domestic product (GDP) in the first quarter of the current fiscal, as against 4% of GDP in the year-ago period.

Dealers said various steps taken by the government and RBI to improve dollar inflows and reduce imports should start reflecting in the CAD numbers from the September quarter.

The dollar index, which measures the US currency's strength against major currencies, was trading at 80.178, down 0.05% from its previous close of 80.221.

The yield on India's 10-year benchmark bond was trading at 8.71%, down from its Monday's close of 8.77%.

At 9.22am, the Indian currency was trading at 62.48, up 0.22%.

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