The rupee ended 21 paise stronger against the dollar at 53.87 on the back of higher growth and lower fiscal deficit targets announced by the Government in the pre-Budget Economic Survey released today.
Finance Minister P Chidambaram today stated the overall economy is expected to grow in the range of 6.1 to 6.7 per cent in 2013-14. The Government has also vowed to bring the deficit down to 4.8 per cent in the fiscal year beginning April.
The Indian unit opened marginally higher at 54.04 from Tuesday’s close of 54.08 due to dollar selling by exporters and banks at the Interbank Foreign Exchange market today.
Intra-day, it touched a high of 53.66 per dollar after which defence and oil related dollar demand weighed on the rupee.
“We expect the positive sentiments were seen ahead of the budget, with the finance minister’s promise to keep the fiscal deficit in target range,” Abhishek Goenka, Founder & CEO, India Forex Advisors.
Call rates and G-Secs
The inter-bank call money rates closed higher at 7.85 per cent from Tuesday's close of 7.75 per cent. After opening at 7.90 per cent, it touched a low of 7.70 during the day.
The widely traded 8.15 per cent government security, which matures in 2022, ended higher at Rs 102.28 (yield: 7.79 per cent) from its previous close of Rs 102.16 (7.81 per cent)