The data cemented confidence about the economy, especially on the back of a sharply narrowing current account deficit, and raised expectations the Reserve Bank of India would keep interest rates on hold at its policy review on April 1.
Rupee opened stronger tracking Asians and the retail inflation data but later there was good dollar buying seen from across segments. There was likely some defence buying too.The rupee is likely to hold in a 60.60 to 61.75 range in the near-term.
The rupee closed at 61.17/18 per dollar compared to 61.2150/2250 on Wednesday. It moved in a range of 60.91 to 61.19 during the session.The rupee was kept in check on the back of good dollar demand from oil importers and from state-run banks, likely for defence-related payments by the government.
In the offshore non-deliverable forwards, the one-month contract was at 61.58 while the three-month was at 62.25.