The rupee was trading strong by 70 paise at 63.14 against the dollar at 2.39 p.m. local time on dollar selling by banks and exporters besides weakening of the greenback against other currencies overseas.
The domestic opened a tad weak at 63.87 per dollar against the previous close of 63.84. It hovered in the range of 64.20-63.68 levels.
The domestic unit had ended higher in the previous session on the back of weak American currency on downbeat jobs data and inflows into the domestic equity market.
In the last five trading sessions, the rupee had gained 379 paise or about six per cent. According to SEBI data, FIIs had pumped Rs 1,280 crore into equity and Rs 670 crore into debt on Tuesday.
India’s trade deficit in August narrowed to $10.9 billion, with exports surging 13 per cent and imports remaining flat. A delay or no military action by the US in Syria will help ease the prices of crude oil that forms a major part of India’s imports.
A series of recent measures by the Reserve Bank of India led to the sharp rise in the domestic unit. According to dealers, heavy dollar selling by custodian banks, a surge in the equity market, and the measures announced for exporters contributed to the rupee sentiment.
Bond yields fell to 8.43 per cent from 8.47 per cent. The 7.16 per cent government bond, which matures in 2023, opened higher at Rs 91.65 from the previous close of Rs 91.41.
The inter bank call money rates, the rates at which banks borrow from each other to meet their short term requirements, opened flat from the previous close of 10.35 per cent.
