Rupee Gains after Govt Cancels Bond Auction

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February 6, 2014 5:14 PM EST

The rupee rises to 62.41/42 versus its previous close of 62.57/58.

Gains in the rupee come after the RBI said late on Wednesday that the government had cancelled its previously deferred bond sale of 150 billion rupees.

Reuters/Vivek Prakash
A customer hands a bundle of rupees to a teller at a financial institution in Mumbai July 2, 2013.

The cancellation shows the government is confident of meeting its fiscal deficit target of 4.8 percent of GDP for 2013/14, traders say.

The rupee could strengthen further in the near-term to around 61.80 to a dollar, trader says, as the government's cash position is set to improve further due to gains from the ongoing mobile spectrum auction.

Globally, the dollar struggles against Asian currencies ahead of key event risks, namely the ECB's policy decision due later on Thursday and U.S. jobs data on Friday.

(Photo: Reuters/Vivek Prakash / )
A customer hands a bundle of rupees to a teller at a financial institution in Mumbai July 2, 2013.
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