Mumbai: The rupee was trading higher against the dollar in the afternoon on a lower-than-expected current account deficit in the June quarter. At 2 pm, the Indian currency was trading at 62.1987 per dollar, up 0.67% from previous close. The partially convertible currency opened at 62.52 and touched a high of 62.1687. The rupee opened at 62.5350 per dollar against its Monday’s close of 62.6175. Dealers said the financial markets had factored in a rise in India’s current account deficit in the first quarter of the current fiscal year, but are optimistic that the deficit will come down in the approaching quarters. On Thursday, data released by the Reserve Bank of India (RBI) showed that the current account deficit rose to a lowe-than-expected 4.9% of gross domestic product (GDP) in the first quarter of the current fiscal, as against 4% of GDP in the year-ago period. Dealers said various steps taken by the government and RBI to improve dollar inflows and reduce imports should start reflecting in the CAD numbers from the September quarter. Since January this year, the rupee has weakened 11.58% and has lost the second most after the Indonesian rupiah among Asian currencies during that period. The dollar index, which measures the US currency’s strength against major currencies, was trading at 79.984, down 0.29% from the previous close of 80.221. The yield on India’s 10-year benchmark bond was at 8.72%, down from Monday’s close of 8.762%. India’s benchmark Sensex Index was trading at 19,480.48, up 0.52% from previous close. The interbank call money rate was at 9.70%.

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