The rupee ended higher at 60.19 on Thursday after the Reserve Bank of India data showed that the current account deficit slowed to 3.8 per cent in the quarter ended March 31, 2013.
Fresh selling of the American currency by exporters also supported the Indian unit, according to dealers.
The Indian unit had closed at 60.72 against the greenback on Wednesday.
Data showing the US GDP grew 1.8 per cent against 2.4 per cent during the same period a year ago has raised investors’ hopes that the Fed may remain cautious in scaling back its $85-billion monthly bond-buying programme.
However, the rupee remains vulnerable to dollar outflows due to global data as well as domestic factors.
India’s external debt rose to $390 billion in the fiscal ended March 31, 2013.
This leaves the currency highly vulnerable to shocks, according to M. R. Das, a former senior economist of a large public sector bank.
Call drops, bonds rise
The inter-bank call money rate closed lower at 6.90 per cent from previous close of 7.40 per cent.
The benchmark 7.16 government security (G-Sec), which matures in 2023, ended higher at Rs 97.26 from previous close of Rs 97.11. Yields softened to 7.55 per cent from previous close of 7.57 per cent.
The 8.15 per cent 2022 G-Sec closed higher at Rs 102.65 from the previous close of Rs 102.35. Yields softened to 7.73 per cent from 7.77 per cent earlier.
satyanarayan.iyer@thehindu.co.in