Forex tips - Rising for the seventh consecutive session, the rupee appreciated 10 paise to 66.23 against the US dollar in early trade on Wednesday, after data showed a narrowing of current account deficit (CAD) to 1.6 per cent of the GDP in the September quarter, compared with 2.2 per cent in the year-ago quarter.The domestic currency had closed at 66.33 against the greenback in the previous session led by dollar selling by banks and exporters.
The gains on Wednesday were also supported by firm cues from other Asian currency markets.Taiwanese dollar jumped 0.95 per cent; Indonesian rupiah (0.33 per cent), Korean won (0.20 per cent) and Japanese yen (0.05 per cent) too were trading higher. Malaysian ringgit, Thai baht and Singapore dollar, meanwhile, inched lower. Chinese yuan was flat.The dollar index, which tracks the movement of dollar against a basket of six major world currencies, stood at 98.26.
Rupee has depreciated nearly 5 per cent against the greenback so far this calendar.The performance has been much better than some of the Asian peers, which have fallen as much as 19 per cent during the same period. Experts expect the domestic currency to continue with its relative outperformance going ahead.
"Our sense is that the rupee is going to be on a better footing compared to other Asian currencies, but the gains will, however, be tempered due to the fact that the RBI has got its eye on the rupee outperformance.
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