The rupee closed stronger at 53.70 against the dollar helped by strong FII inflows and selling of the American unit by some exporters.
The domestic unit opened slightly lower at 53.88 but quickly recovered to Wednesday’s close of 53.80 within the first 30 minutes of trade.
The focus will shift to global developments over the next 10 days in the absence of any major developments in the domestic markets.
China reported a slight improvement in its Purchasing Managers’ Index (PMI) data, which measures the factory activity in a country. China’s manufacturing activity as measured by the PMI improved to 50.2 in October from 49.8 in September.
According to HSBC’s PMI data released today, India’s manufacturing activity improved a tad to 52.9 in October from 52.8 in September. A figure above 50 indicates expansion.
Also, the currency markets will tune into developments in the G-20 meeting to be held in Mexico City later this week.
Ahead of the meeting, three international organisations said in a report that FDI is critical for developing countries such as India, Brazil, South Africa and Mexico.
They have called on the G-20 economies to revitalise the multilateral trading system.
The US presidential election is around the corner and that will also play a role in determining the international market mood. This might also have an impact on the Indian unit.
Call down; bond up
The inter-bank call rates closed lower at 8 per cent from previous close of 8.15 per cent on Wednesday.
The 8.15 per cent government security (G-Sec), which matures in 2022, closed higher at Rs 99.76 (yield: 8.19 per cent) against Wednesday’s close of Rs 99.56 (yield: 8.21 per cent). — Our Bureau