The rupee strengthened by 32 paise to 59.95 against the dollar versus the previous close of 60.19 after the Reserve Bank of India data showed that the current account deficit slowed to 3.8 per cent in the quarter ended March 31, 2013.
Also, data showing the US GDP grew 1.8 per cent against 2.4 per cent during the same period a year ago has raised investors’ hopes that the Fed may remain cautious in scaling back its $85-billion monthly bond-buying programme.
However, the rupee remains vulnerable to dollar outflows due to global as well as domestic factors. Foreign institutional investors (FIIs) have been persistently paring their investments in the equity and debt markets, which is weakening the Indian currency.
The interbank call money rates opened higher at 7.30 per cent from their previous close of 6.9 per cent.
The benchmark 7.16 government security (G-Sec), which matures in 2023, opened higher at Rs 97.48 from the previous close of Rs 97.26. Yields softened to 7.52 per cent from 7.55 per cent.
The 8.15 per cent government security (G-Sec), which matures in 2022, opened higher at 102.85 from the previous close of Rs Rs 102.65. Yields softened to 7.7 per cent from the previous close of 7.77 per cent.
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