Rupee, bonds gain after trade deficit narrows

Reuters
A man begs outside a currency exchange shop in New Delhi
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A man begs outside a currency exchange shop in New Delhi August 21, 2013. REUTERS/Adnan Abidi/Files

MUMBAI (Reuters) - The rupee, shares, and benchmark bonds gained on Wednesday after data showed the September trade deficit narrowed sharply from August, reducing concerns about the country's current account balance.

India's trade deficit narrowed to $6.7 billion last month, compared with $10.9 billion in August.

The rupee strengthened to 61.9650 per dollar at 1155 am from around 62.10 before the data, while the benchmark 10-year bond yield initially fell around 4 basis points but then recovered to trade at 8.44 percent, still down from its 8.50 percent close on Tuesday.

Shares also added gains after the trade data, with the broader Nifty up 0.58 percent.

(Reporting by Mumbai markets team; Editing by Sunil Nair)

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