The rupee ended higher at 53.96 against the dollar spurred by gains in the domestic equity markets and a narrowing trade deficit data.
The Indian unit, which had closed at 54.20 on Wednesday, opened a tad lower at 54.22 weighed by demand from oil importers.
The rupee’s sentiment was boosted after the Government announced fresh incentives for exporters, SEZs.
The Finance Minister has assured international investors of “reforms,” such as periodic diesel price increase staying the course despite the impending state and national elections.
Softening commodity and gold prices are also adding to the positive sentiment as this is being seen as critical to bringing down the yawning gap in current account. A higher current account deficit exerts downward pressure on the rupee.
Call rates, G-Secs
The interbank call money rates closed lower at 7.40 per cent from the previous close of 7.65 per cent.
The 8.15 per cent government security, which matures in 2022, closed higher at Rs 102.38 from the previous close of Rs 102.22. Yields softened a tad to 7.77 per cent from the previous close of 7.80 per cent.