MUMBAI: The Indian rupee on Tuesday strengthened for the second consecutive session against the US dollar after the government data showed stronger-than-estimated gross domestic product (GDP) and improvement in fiscal deficit data for the September quarter.
At 9.09am, the home currency was trading at 66.51, up 0.24% from its previous close of 66.67. The local unit opened at 66.53 a dollar and touched a high and a low of 66.50 and 66.54, respectively.
Traders are also cautious ahead of the Reserve Bank of India’s (RBI) bi-monthly policy on 1 December. The RBI is expected to leave its key policy rate unchanged on Tuesday but may find room to ease rates further in 2016, according to a Mint poll of treasurers and economists at 10 top domestic and foreign banks.
The Nikkei India Manufacturing Purchasing Managers’ Index (PMI) data for the month of November is due on 1 December after 10.30am.
The latest data released by the statistics department on 30 November showed India’s GDP growth was at 7.4% in the September quarter compared with 7% in the June quarter as measured at market prices. Another measure—gross value added (GVA) at basic prices—showed that economic growth accelerated to 7.4% in July-September against 7.1% in April-June.
The country’s fiscal deficit was Rs.4.11 trillion during April-October, or 74% of the target for FY16. The deficit was 89.6% of the target in the same period last year, according to the controller general of accounts website.
The benchmark Sensex index fell 0.01%, or 2.18 points, to 26,143.49.
The yield on India’s 10-year benchmark bond was trading at 7.77% compared with its previous close of 7.78%. Bond yields and prices move in opposite directions.
