Mumbai: The Indian rupee strengthened against the dollar on Friday on optimism foreign investors will keep buying the nation’s assets as inflation eases, economic growth recovers and the current-account deficit narrows. The rupee closed at 61.7575 per dollar, up 0.37% from its previous close of 61.985. The domestic currency opened at 62.105 per dollar and touched a high and a low of 61.76 and 62.14 per dollar, respectively. The currency has risen 0.07% so far this year, when foreign institutional investors have bought equities worth $309.3 million in the local markets. The government will release GDP data for the three months ended December at 5.30pm. A Bloomberg poll showed that GDP will grow 4.7% in the December quarter as against 4.8% in the September quarter. The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.916, down 0.46% from the previous close of 80.285. The yield on India’s 10-year benchmark bond ended at 8.861%, compared with Wednesday’s close of 8.919%. Bond yields and prices move in opposite directions. Markets were closed on Thursday for a local holiday. India’s equity benchmark index, S&P BSE Sensex, ended at 21120.12 points, up 0.63%. The fiscal deficit touched Rs.5.33 trillion during April-January, or 101.6% of the full year target, compared with 89.4% at the same point a year ago, government data showed on Friday.

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