Narrower CAD strengthens Rupee!

The rupee is currently trading at 63.79, stronger by 5 paise from its previous close of 63.84 on Wednesday. 

Indian rupee, extending previous two consecutive sessions’ appreciating streak was trading strong in early deals on Thursday. Relentess dollar selling by state run banks and exporters combined with higher opening of local equities mainly aided the sentiment. The curreny also strengthened after the current account deficit (CAD) for the March quarter slipped to 0.2% of gross domestic product (GDP), its lowest in a year, helped by a lower trade deficit. This is positive news for local currency as a low CAD basically supports rupee and would help India counter possible capital outflows in the event of a hike in interest rates by the US Federal Reserve later this year. On the global front,  dollar resumed its uptrend against the yen Thursday after suffering a sharp sell-off in the previous session. Bank of Japan chief Haruhiko Kuroda sent the yen soaring on Wednesday when he said the Japanese unit's recent sell-off was "unlikely" to continue, even if the Federal Reserve hikes interest rates.

The rupee is currently trading at 63.79, stronger by 5 paise from its previous close of 63.84 on Wednesday. The currency touched a high and low of 63.82 and 63.74 respectively. The Reserve Bank of India’s (RBI) reference rate for the dollar stood at 63.88 and for Euro stood at 72.14 on June 10, 2015. While, the RBI’s reference rate for the Yen stood at 51.94, the reference rate for the Great Britain Pound (GBP) stood at 98.4722.