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The rupee ended the session higher at 64.08 as the dollar slid broadly on Thursday, hampered by a recent dip in US 10-year bond yields.
The dollar's index against a basket of six major currencies slipped to as low as 92.734, its weakest level in almost four weeks. The index has dropped more than 9 per cent this year, putting it on track for its biggest annual slide since 2003.
The domestic unit opened a tad weak at 64.16 at the Interbank Foreign Exchange market against the previous close of 64.15. It further weakened by 15 paise to 64.28 owing to concerns that the government’s additional borrowing this fiscal may lead to a breach of the fiscal deficit target.
However, the dollar's weakness against select currencies in the global market contained the rupee fall. The domestic unit hovered in a range of 64.28 and 64.07 before ending at 64.08, up 7 paise.
The government had yesterday said it has decided to make an additional borrowing of Rs 50,000 crore this fiscal through dated securities, a move that may put burden on the fiscal deficit target of 3.2 per cent of GDP. However, there will be no change in net borrowing as envisaged in the Budget for 2017-18, a Finance Ministry statement said.
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