The rupee opened higher 17 paise at 66.86/$ against US Dollar Thursday as against the previous close of 67.01/$.
The current account deficit (CAD) narrowed sharply to just USD 300 million, or 0.1% of GDP, in the June quarter, driven by lower trade deficit on deeper import contraction, the Reserve Bank said.
On the economy front, the Union cabinet also approved the finance ministry’s proposal to advance the general budget’s presentation by a month from the end of February.
Asian markets opened higher on Thursday. Shanghai Composite and Hang Seng are up by 1% each.
Wall Street closed sharply higher on Wednesday after the Federal Reserve kept interest rates unchanged. The Dow Jones industrial average gained 0.90% to close at 18,293.7 points. The S&P 500 rose 1.09% to end at 2,163.12 points, while the Nasdaq advanced 1.03% to close at 5,295.18 points.
The US Federal Reserve left interest rates unchanged on Wednesday but strongly signalled it could still tighten the monetary policy by the end of this year as the labour market improved further.
The Rs.6,057-crore IPO of ICICI Prudential Life Insurance Company has oversubscribed 10.47 times on Wednesday, the last day of subscription.