The Indian rupee posted its biggest single-day rise in nearly a week after Reuters reported that India's finance ministry was working on a proposal to cut fiscal deficit, with gains also helped by improving global risk sentiment. The rupee hit a session high of 58.41 per dollar, stopping just short of an 11-month peak on Monday, on the Reuters report that India's finance ministry was hoping to cut the 2014/15 fiscal deficit to 3.8-3.9 percent of gross domestic product, below the current target of 4.1 percent.
"Only a break of 58.30 per dollar will revive some rupee-positive sentiment and until such time, we will trade between 58.30 to 58.90," said Hemal Doshi, a currency strategist at Geojit Comtrade Ltd. The partially convertible rupee closed at 58.4675/4775 per dollar, not far from 58.3750 reached on Monday, its strongest level since June 18 last year. It closed at 58.7750/7850 on Wednesday. In the offshore non-deliverable forwards, the one-month contract was at 58.70, while the three-month was at 59.29.
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