Rupee gains; trade data largely in line

Reuters Market Eye - The rupee was trading at 60.67/68 versus its close of 60.85/86, boosted by dollar selling by custodian banks and tracking gains in other Asian units versus the greenback.

The February trade data failed to have much impact as it was largely in line but a fall in exports could be a small negative which will limit a sharp drop in the dollar, traders say.

Trade deficit narrowed in February on sharp fall in imports which could further ease pressure on the country's current account balance but merchandise exports fell 3.67 percent year-on-year to $25.69 billion, compared with a 3.8 percent growth in January.

The next key resistance for the pair is seen at around 60.60 levels, which, if broken, can take it to 59.90, traders say.

The domestic sharemarket will continue to be watched for cues on foreign fund flows. The main share index currently trading down 0.4 percent.

(Reporting by Swati Bhat)