Rupee settles 8 paise higher at 68.42 vs USD on Budget day

The rupee pared early losses Friday to settle 8 paise higher at 68.42 against the US dollar as market participants said fiscal deficit and gross borrowings announced in the budget were broadly in-line with expectations.

In a volatile session at the interbank foreign exchange, the local unit opened at 68.55 per dollar, but soon recovered lost ground and touched a high of 68.40, as Finance Minster Nirmala Sitharaman presented her maiden budget in Parliament.

The domestic currency finally ended at 68.42 against the greenback, higher by 8 paise over its previous closing.

The rupee on Thursday settled at 68.50 against the US dollar.

On a weekly basis, the Indian currency has gained 61 paise.

Speaking on the rupee movement, Lakshmi Vilas Bank Head Treasury R K Gurumurthy said "fiscal deficit and gross borrowings are in line with pre-budget expectations. Additionally, some part of borrowings within the gross borrowings is estimated to be raised overseas. So pressure on domestic liquidity is much less."