Mumbai: The Indian rupee rose on Friday, tracking stronger domestic stock markets, after the federal budget presented by finance minister Pranab Mukherjee earlier in the day raised expectations it would boost consumption.
At 3:55pm, the partially convertible rupee was at Rs46.1250/1350 per dollar, off an intraday high of Rs46.1125, and stronger than Thursday’s close of Rs46.3950/4050.
The benchmark BSE share index was trading up more than 1%, after rising more than 2% earlier in the day.
In the federal budget, India revised its fiscal deficit projection for 2009/10 to 6.9 percent of GDP from 6.8 percent, and said this will be cut to 5.5% in 2010/11.
One-month offshore non-deliverable forward contracts were at Rs46.18/28, weaker than the onshore spot rate.
In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both quoting at Rs46.2525.