Rupee strengthens as June trade deficit narrows

Mumbai: The Indian rupee strengthened considerably against the dollar after the government announced that the trade deficit had narrowed in June.

The local currency strengthened to as much as 55.12 a dollar against its morning opening of 55.65 and the day’s low of 55.72. At 4:40 pm, the rupee was at 55.23 against the dollar.

The trade deficit for June was at $10.3 billion as exports contracted by 5.45% from a year earlier to $25.07 billion while imports declined by 13.46% to $35.37 billion.

In the April-June quarter last fiscal year, the trade deficit was at $46.3 billion.

The local currency hit its all-time low of 57.30 against the dollar in intraday day trade on 22 June.