Indian rupee closed 3 paise higher at 66.58 on Monday following selling of the American currency by banks and exporters amid firm domestic and global cues. The local currency opened 10 paise up at 66.51 against the US dollar. During the day, rupee hit a high of 66.45 and low of 66.59. Domestic equity markets gained over a percentage point on Monday on the back of firm rupee and favourable global cues. The 30-share index closed 377.33 points, or 1.35 per cent, up at 28,243.29.
The Indian rupee on Friday closed 24 paise up at 66.61 against US dollar at Interbank Foreign Exchange market. According to forex dealers, selling of dollars by exporters and banks, expectations of strong capital inflows coming into the country in the long-run due to strong economic fundamentals largely supported the rupee.
According to Morgan Stanley Investment Management, India’s current account and trade deficits have witnessed dramatic improvement from the peak level in the quarter ended December 2012. India’s current account deficit (CAD) narrowed to 0.1 per cent of GDP for the June quarter this year, from the peak of 6.8 per cent of GDP in the quarter ended December 2012.