Rupee gains to 62.39/ dollar on bond auction cancellation

The rupee rose to 62.39 per dollar versus its previous close of 62.57/58 on Thursday. Gains in the rupee come after the RBI said late on Wednesday that the government had cancelled its previously deferred bond sale of Rs 15,000 crore.

The cancellation shows the government is confident of meeting its fiscal deficit target of 4.8 per cent of GDP for 2013/14, traders said.

The rupee could strengthen further in the near-term to around 61.80 to a dollar, traders say, as the government's cash position is set to improve further due to gains from the ongoing mobile spectrum auction.

Globally, the dollar struggled against Asian currencies ahead of key event risks, namely the ECB's policy decision due later on Thursday and US jobs data on Friday.


(With inputs from Reuters)