Photo: Bloomberg
Photo: Bloomberg

Rupee closes higher as govt not to revise fiscal deficit target

  • Rupee closed at 71.72 to a dollar, up 0.17% from its previous close of 71.84
  • So far this year, the rupee has lost 2.71%, while foreign investors bought $11.80 bn and $5.13 bn in equity and debt markets respectively

MUMBAI : The Indian rupee strengthened against the US dollar on Tuesday as the government said it has no plan to revise its fiscal deficit target on account of slowing economic growth.

Rupee closed at 71.72 to a dollar, up 0.17% from its previous close of 71.84. The currency had opened at 71.95 a dollar, and touched a high of 71.68 and a low of 72.01.

The yield on the 10-year bond closed at 6.47% from its Monday’s close of 6.48%.

So far this year, the rupee has lost 2.71%, while foreign investors bought $11.80 billion and $5.13 billion in equity and debt markets respectively.

On Monday, they sold 599 crores of sovereign bonds under limits available to foreign investors, and withdrew 323 crore of corporate debt. State-run banks sold 331 crore worth of sovereign bonds, according to data from Clearing Corporation of India Limited.

Other Asian currencies were weak today. The South Korean Won and Philippines Peso lost nearly 0.37% and 0.29% respectively and Indonesiah Rupiah fell 0.09%. The China Renminbi gained 0.02%.

(Bloomberg contributed to the story)

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