India's annual current account gap at record 4.8% of GDP
MUMBAI (REUTERS) - India's current account deficit hit a record high 4.8 per cent of gross domestic product in the fiscal year that ended in March, fuelled by rising imports of oil and gold, but was lower than an expected gap of 5 per cent, giving a boost to the battered rupee.
The current account data was released a day ahead of schedule and a day after the Indian rupee touched a record low of 60.76 to the dollar. The Indian currency rose as high as 60.31 to the dollar in early Thursday trade after the data release.
"I think there was a clear motivation on the part of the RBI to put the market at ease. It shows they were uncomfortable at the recent sell-off, and perhaps, this is the best way to combat that," said Jyotinder Kaur, economist at HDFC Bank.
The current account gap for the full fiscal year ending in March was US$87.8 billion (S$111 billion), compared with US$78.2 billion a year earlier.