Rupee climbs over 60 paise against US dollar after Moody’s rating upgrade

NEW DELHI:The rupee strengthened 64 paise to 64.68 against dollar in early trade on Friday after international rating agency Moody's Investors Service upgraded India's local and foreign currency issuer ratings to Baa2 from Baa3 and changed the outlook to stable from positive.

The local currency on Thursday closed 11 paise lower at 65.32 against the US currency.

Foreign portfolio investors remained net buyers in equity segment on Thursday and bought shares worth of Rs 1,830.78 crore with gross purchases and gross sales of Rs 7,564.20 and Rs 5,733.42 crore, respectively.

India’s bond yield fell by 11 basis points in early trade from Thursday’s high.

Benchmark equity indices opened higher on Friday. The BSE Sensex opened 281.65 points, or 0.85 per cent, up at 33388.47, while NSE Nifty index opened 109.80 points, or 1.07 per cent, up at 10,324.55.

The rating upgrade comes after a gap of 13 years - Moody's had last upgraded India's rating to 'Baa3' in 2004.

In 2015, the rating outlook was changed to 'positive' from 'stable'.

Moody's has also upgraded India’s local currency senior unsecured rating to Baa2 from Baa3 and its short-term local currency rating to P-2 from P-3, according to a statement from the agency.