From RIL to Air India: India Inc wades into rupee bond market as costs drop

Rupee bond sales are gathering pace once again as some of India’s bellwether companies consider tapping the market, after a lull in February.
A flurry of fundraising in the beginning of the year cooled last month as issuers waited for cues on rates from the federal budget and monetary policy review. Sales are now back on track as large firms wade in to take advantage of falling financing costs.

Robust Pipeline
That’s adding to optimism on issuance. Sales are still up 17 percent for the year vs the same period in 2018, due to the strong start in January and despite the lowest volume last month since May, according to data compiled by Bloomberg.
Bharat Petroleum Corp. is seeking bids for as much as Rs 15 billion through a five-year bond sale Thursday. The state-run refiner is returning after a gap of more than a year.
Air India last week sought fee bids from bankers as it looks to borrow as much as Rs 70 billion by March 31. The ailing state-controlled carrier hasn’t visited the rupee bond market since November 2012.
Billionaire Mukesh Ambani’s Reliance Industries Ltd. is also sounding out bankers for a rupee issuance.
Yield Move
The federal budget weighed on corporate bonds last month, after the government announced record borrowings to finance populist measures. Yields surged briefly at that time on concerns that fiscal slippage may hang over the sovereign rating.
However, a surprise interest rate cut by the central bank and easing retail inflation later drove down borrowing costs.
Average rates on top rated three-year corporate notes sold by state companies ended at 8.25 percent on Tuesday, close to the lowest level in 10 months.

Rupee touches fresh low of 70.74 to a dollar despite RBI intervention

The rupee slid further by 15 paise to close at a fresh lifetime low of 70.74 to the dollar due to strong demand for the greenback from oil importers and surging crude oil prices stoking inflation fears.
The local unit dwindled down to hit a historic intra-day low of 70.90 in early trading - a level that was unthinkable only a few weeks ago.

However, sporadic intervention by the RBI at various levels limited further losses and triggered some recovery towards the close.
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At the same time, the bond yield curve also rose dramatically to 7.93 per cent.
Strong month-end demand for the US currency mainly from oil importers along with currency futures expiry related purchases predominantly weighed heavily on the forex market and haunted investor sentiment.
Growing fears about rising inflation in the midst of high global crude oil prices and consistent outflow of foreign funds from the domestic equity market also weighed down on the domestic currency.
Crude prices firmed up further on growing evidence of disruptions to supply from Iran and Venezuela and after a fall in US crude inventories.
ALSO READ: Rupee pares early losses, down 10 paise at 70.69 against US dollar
Benchmark Brent crude oil was at $77.65 a barrel in early Asian trade.
Foreign portfolio investors (FPIs) sold shares worth Rs 14.1587 billion on net basis yesterday, according to exchanges data.
The forex market was nervous after reports highlighted risks of India breaching the 3.3 per cent fiscal deficit target for 2018/19. The rupee has fallen over 10 per cent so far this year against the US dollar, a dealer commented.
High Indian bond yields due to worsening inflation outlook also added some amount of pressure.
Maintaining its bearish stance, the domestic currency opened weak at 70.64 against Wednesday's close of 70.59 at the inter-bank foreign exchange (forex) market.
ALSO READ: Rupee sinks to all-time low of 70.82 against dollar, plunges 23 paise
Reeling under heavy dollar pressure, it extended the drop to a fresh record low of 70.90 in mid-morning deals before recouping some losses to end at 70.74, showing a fall of 15 paise, or 0.21 per cent.
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.7329 and for the euro at 82.7184.
Meanwhile, BSE Sensex slipped 33 points, or 0.08 per cent, to close at 38,690. The NSE Nifty declined 15 points, or 0.13 per cent, to 11,677 at close.
Globally, the US dollar traded higher against its key rivals after data showed higher-than-expected US economic growth in April-June cemented expectations for a rate hike next month.
Against a basket of other currencies, the dollar index is up at 94.56.
In the cross-currency trade, the rupee also took a severe knock against the British pound to finish at 92.07 per pound from 90.98 and also dropped against the euro to settle at 82.69 as compared to 82.34 on Wednesday.
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The local unit, however, closed unchanged against the Japanese yen at 63.46 per 100 yens.
In the forward market on Thursday, the premium for dollar fell sharply due to heavy receiving from exporters.
The benchmark six-month forward premium payable in December declined to 98-100 paise from 102-104 paise and the far-forward June 2019 contract slumped to 246-248 paise from 252-254 paise earlier.

Rupee leaps from life-time low to snap weeks of decline despite headwinds

The rupee staged a spirited recovery from its life-time low to end higher by a whopping 24 paise at 69.91 against the US currency in a highly volatile week on bouts of dollar selling by exporters and corporates.
After a seemingly endless stream of gloomy news and falling values, sentiment has finally started to show signs of improvement globally against the backdrop of the upcoming visit of Chinese delegates to the US in order to re-ignite trade talks.
Easing contagion risk on emerging-market currencies after last week's carnage also added a positive vibe on the trading front.
The domestic currency larely withstood the headwinds of surging crude prices and trade deficit worries.
The benchmark Brent crude surpassed the significant $75-mark a barrel once again on re-emergence of a supply shock.
Excess volatility and movements in the US dollar had a major impact on the domestic unit initially.
The rupee got hammered to hit a low of 70.24 before rebounding from a fag-end wallop, snapping a two-week losing streak.
The Indian currency had its most turbulent week in more than two years witnessing record lows after doing little to quell investors' fears of a prolonged downturn ahead - a shock resembling 2013 currency crisis.
ALSO READ: Rupee@70: RBI may have shifted rupee intervention limit, say analysts
It crashed to a historic low of 70.40 against the dollar last week in the wake of Turkey's currency crisis.
The rupee had depreciated by a staggering 2.26 per cent, or 155 paise.
The US dollar shed windfall gains scored on the back of haven demand amid turmoil in emerging market assets.
India's foreign exchange reserves fell by $33.2 million to $400.847 billion in the week to August 17 mainly due to fall in foreign currency assets, according to RBI data.
Meanwhile, foreign investors and funds pumped in over Rs 75 billion into the Indian capital markets so far this month on better corporate earnings coupled with improvement in crude oil prices.
ALSO READ: Rupee has not depreciated to a worrying level, govt should watch CAD: Rajan
On the energy front, crude prices snapped their seven seven straight weeks of decline - the longest losing streak in three years as supply risk jumped back into the limelight on growing concern over Iranian sanctions cutting off a major supply source.
The benchmark Brent crude surged over $1.02, or 1.4 per cent to end at $75.75 a barrel.
Earlier this week, staging a smart recovery, the rupee sharply higher at 69.83 from last Thursday's closing value of 70.15 at the inter-bank foreign exchange (forex) market.
The fresh breakout pushed the local unit to hit a high of 69.53 on fresh dollar selling also supported by a strong rally in local equities.
ALSO READ: Ongoing depreciation of the rupee to add to India Inc's borrowing woes
However, succumbing to a mid-week sell-off spooked by global trade war jitters, the rupee retrated sharply to breach the 70-mark once again to touch a low of 70.24 briefly before recuperating all losses to end at 69.91, revealing a sharp gain of 24 paise, or 0.34 per cent.
The RBI, meanwhile, fixed the reference rate for the dollar at 70.1377 and for the euro at 81.1699. The 10-year benchmark yield ended modestly higher at 7.87 per cent. Globally, the US dollar shed windfall gains scored on the back of haven demand amid turmoil in emerging market assets.
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The Federal Reserve Chair Jerome Powell comments at the Jackson Hole sent the US dollar lower against all of the major currencies on Friday after he confirmed that steady rate hikes are the best way to protect the US economic recovery, though investors were not impressed.
The euro climbed to its strongest level in three weeks despite persistent rise in Italian yields.
The British pound also extended its recovery but the lackluster rally signals that investors are still worried about Brexit.
The dollar index, which measures the greenback's value against a basket of six major currencies dropped to 95.08 from 96 earlier.

Rupee makes strong comeback, rises 20 paise to 69.91 versus dollar

The rupee on Friday staged a good recovery to end higher by 20 paise at 69.91 against the US currency on bouts of dollar selling by exporters and corporates.
The domestic currency recouped early losses and withstood the headwinds of surging crude prices and trade deficit worries.

Excess volatility and movements in the US dollar had a major impact on the domestic currency.
The domestic unit hit a low of 70.24 before rebounding in late afternoon deals.
India's trade deficit soared to a near five-year high of $18 billion, raising concerns on the current account front.
Also, global crude prices surged after a brief consolidation largely supported by signs that US sanctions on Iran, the third-biggest producer in the OPEC, are already reducing global crude supply.
The benchmark brent was up 60 cents a barrel at $75.33 in early Asian trade.
ALSO READ: Sudden depreciation of rupee not good as it adds volatility in market: SBI
The market participants are now focusing on the upcoming Jackson Hole Central Banking Symposium and also closely watching developments of the US-China trade war and its implications on global growth and influences on Fed monetary policy, a forex dealer commented.
The sharp fall in the rupee on Thursday was clearly unexpected, he added.
Meanwhile, the US dollar continued to enjoy the Fed's optimism from the FOMC meeting minutes expectation of monetary tightening even investors awaited further moves in global trade disputes despite growing US political uncertainty.
The Indian economy is expected to grow by around 7.5 per cent in 2018 and 2019 as it is largely resilient to external pressures like those from higher oil prices, Moody's Investors Service said.
ALSO READ: Rupee@70: RBI may have shifted rupee intervention limit, say analysts
In its Global Macro Outlook for 2018-19, Moody's said the run-up in energy prices over the last few months will raise headline inflation temporarily but the growth story remains intact as it is supported by strong urban and rural demand and improved industrial activity.
In the meantime, Indian shares edged down, taking a pause after hitting record highs.
Extending its overnight bearish trend, the rupee opened lower at 70.20 at the inter-bank foreign exchange (forex) market on sustained demand for the American currency from importers and banks.
It drifted to a low of 70.24 and staggered without direction in line with most Asian peers.
But the downside pressure shifted quickly to the upside in mid-afternoon trade and moved into a bullish phase.
After scaling a session high of 69.89 towards the fag-end trade, it finally settled at 69.91, revealing a smart gain of 20 paise, or 0.29 per cent.
The local unit had lost 30 paise against the dollar.
For the week, the rupee recuperated by a whopping 24 paise after a two straight weeks of fall.
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 70.1377 and for the euro at 81.1699.
ALSO READ: Rupee's weakness worrying you? Beat depreciation with international funds
The 10-year benchmark bond yield also softened to 7.87 per cent.
Against a basket of other currencies, the dollar index is down at 95.26.
In the cross currency trade, the rupee bounced back against the British pound to end at 89.86 per pound from 90.41 and also recovered against the euro to close at 80.98 compared to 81.21 on Thursday. It strengthened against the Japanese yen to finish at 62.78 per 100 yens from 63.29 earlier.
Elsewhere, the euro and pound sterling traded modestly higher against the US dollar ahead of US data releases and the speech by Chief J Powell at the Jackson Hole Symposium.
In forward market on Friday, premium for dollar showed a mixed trend owing to lack of market moving factors.
The benchmark six-month forward premium payable in December moved down to 104-106 paise from 105-107 paise, while the far-forward June 2019 contract was quoted unchanged at 253-255 paise.

Rupee breaches 70-mark against dollar, experts say volatility manageable

The rupee recovered after touching an all-time low of 70.08 against the US dollar amid intense pressure on emerging market currencies, triggered by a financial crisis in Turkey, including the rout of its currency lira. The rupee closed at Rs 69.89 on Tuesday.
The currency has showed resilience as the country is better placed to manage volatility and shocks to the system, backed by adequate foreign exchange reserves and manageable current account deficit, said economists and experts.
According to the Clearcorp Dealing Systems data, the rupee opened at 69.80 against the US Greenback, stronger than Monday’s close of Rs 69.93. But it soon began the downhill journey to cross the crucial threshold of Rs 70 to a dollar mark.
The Reserve Bank of India’s (RBI’s) stance is that foreign exchange intervention should remain two-sided and limited to addressing disorderly market conditions.
From the end of March 2018 to August 3, India’s foreign exchange reserves were down by $21.84 billion to $402.70 billion. The reserves have declined as some of it have been used to contain extreme volatility in the currency markets, currency dealers said.
Rupa Rege Nitsure, group chief economist, L&T Finance Holdings, said the rupee’s significant depreciation in the past few days didn’t warrant any panic reaction. It was primarily due to the currency crisis in Turkey and going to be a transitional phenomenon, she added.
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All emerging markets’ currencies have come under pressure due to the turmoil in Turkey.
“India has sufficient forex buffer to manage the volatility. Luckily, global crude prices have stabilised and India's inflation is well controlled. Given that the currency was overvalued, its rapid depreciation should improve price competitiveness of exports, which have been steadily reviving,” she said.

ALSO READ: Rupee fall spooks India Inc boardrooms; CFOs worry RBI may hike rates again
SBI Chairman Rajnish Kumar said the Indian currency had not weakened as much as other currencies against the dollar. “I feel it (rupee) should stabilise between 69 and 70, because if you look at the numbers for investment which is coming into the country -- investment in bonds, investment in equities -- this level has become attractive for foreign investment,” he said.
Pointing to India’s improved external sector profile, Abheek Barua, chief economist at HDFC Bank, said, “If you look at the fragile market, our fundamentals are stronger and the vulnerability is much lower. Globally, the level of anxiety and risk averseness has increased simply because of the policies from the United States, which have made global markets nervous. Typically, these episodes do not last very long and we should see a reversal in the rupee, particularly since the RBI has categorically been defending it and is not in favour of depreciation beyond Rs 69 to a dollar."
ALSO READ: Rupee hits record low of 70.08 a dollar, Turkey rout complicates RBI's job
India has been affected by the emerging market turmoil since mid-April. Portfolio outflows from India were relatively large, triggered by the run-up in international oil prices and tighter global financial conditions. Domestic concerns over fiscal slippages and the banking system’s exposure to the sovereign also had influenced investors sentiments.
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This episode of capital reversal has been less intense than the 2013 Taper Tantrum, thanks to India’s stability-oriented policies and progress with structural reforms in recent years. The RBI accelerated the scaling back of its net forward foreign exchange position, which has been ongoing since September 2017.
B Prasanna, group executive and head – global markets group, ICICI Bank, said the rupee was the victim of a contagion effect impacting all emerging markets, triggered by the Turkish crisis. The gradual pace of depreciation witnessed till the 69 levels is a result of the yuan depreciation and the current account deficit worsening sharply from 0.6 per cent of GDP in 2016-17 to an expected deficit close to 2.5 per cent of GDP this year.
In medium term, the rupee would need to depreciate further to keep up with the inflation differentials with other trading partners. However, there could be a minor reversal of this depreciation in short term if the global situation stabilised, Prasanna said.

Rupee bounces back from 15-month low of 68.11 a dollar on RBI intervention

The rupee recovered smartly on Wednesday from the 15-month low reached a day before, as the Reserve Bank of India (RBI) stepped in with heavy dollar sales.
Besides, trade data for April, released after market hours on Tuesday, showed that non-oil imports fell and exports made a robust recovery, despite rising global crude oil prices.

At 1 pm, the rupee was trading at 67.84 a dollar, down from its previous close of 68.11, a level last seen in January 2017. Bond yields, though, remained stable at 7.89 per cent, compared with the previous close of 7.90 per cent.
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Currency dealers said nationalised banks were heavy sellers of dollars since the opening of the market. The rupee had hit 68.1325 a dollar in the morning trade, but persistent dollar selling by nationalised banks strengthened it to as much as 67.75-a-dollar level. When the RBI intervenes in the market, it does so through a clutch of nationalised banks. The dollar index, which measures the greenback’s strength against major currencies, remained stable at 93.229 at the time of writing of this story.
Even as RBI chipped in on Wednesday, it was absent from the market on Tuesday, causing panic among traders. But that has dissipated now. “There is no panic at all, bonds have also stabilised. Exporters have slowly started selling in the markets at these levels,” said a senior currency dealer with a foreign bank.
But the bond market could come under pressure as analysts have started expecting a sharp hike in rates by the RBI in the coming days. "We now expect a total of 50-basis-point rate hikes in June and August, compared with our previous call of no change. The MPC is likely to shift its stance to ‘withdrawal of accommodation’ from ‘neutral’. We have revised FY19 (ending March-2019) CPI inflation forecast to 4.80 per cent from 4.45 per cent previously, on higher crude oil prices, a weaker rupee and a surprise uptick in core CPI in April," said Anubhuti Sahay, chief economist of Standard Chartered India.
Even as a split verdict in Karnataka election dampened sentiment on Tuesday, subsequent data for April showed that trade deficit increased marginally to $13.7 billion from $13.2 billion a year ago. The import of gold & precious stones and electronics goods showed a contraction, making up for the rise in crude oil prices.
“The deficit turned out to be the same as last year, even as the oil bill increased to $10.41 billion from $7 billion earlier. Exports rose about five per cent, aided by a weaker rupee. Therefore, there is a logic behind the rupee gaining strength today. The market is realising that the rupee’s depreciation is not a one-way street to doom; it aids export growth, as well as import contraction in some assets,” said Harihar Krishnamurthy, head of treasury at First Rand Bank.
Terming Tuesday’s rupee movement as knee-jerk, Krishnamurthy said the rupee had paused, and if it stayed this way for two-three trading sessions, exporters would start selling their dollars in huge numbers.
“It is a very good level for them to hedge at 67.80 a dollar and book a premium of about 4 per cent. They must have started realising that the rupee is not going to touch 70,” said Krishnamurthy. He expects the rupee to consolidate around 66.5-67 a dollar in the coming days.
Even as the rupee’s sudden loss on Tuesday gave a scare to the market, and indicated towards its record lows of 68.87 a dollar reached on August 2013, there is a difference in the fundamentals between then and now.
In 2013, fiscal deficit was at about 6 per cent of gross domestic product (GDP), whereas current account deficit (CAD) was close to 4.5 per cent. Now, the fiscal deficit is projected at 3.3 per cent, whereas the CAD is at 2.5 per cent.
Besides, the mobilisation of Rs 1 trillion in goods and services tax (GST) gave a confidence that the fiscal deficit target would be met, despite a spike in oil prices and the strengthening of the dollar, said bond market experts. Of course, rising crude oil prices do pose a continued challenge to the fiscal situation.
“The continued rise in the crude oil price in the ongoing month does not augur well for the upcoming print of the merchandise trade deficit,” said Aditi Nayar, principal economist at ICRA Ltd.
“Assuming an average price for the Indian crude oil basket at $70/barrel, we expect the net petroleum, crude and products import bill to surge to $93 billion in 2018-19 from $70 billion the previous year. This is likely to push up the current account deficit to US$65-70 billion or about 2.4 per cent of GDP in 2018-19. While a current account deficit of around 2.5 per cent of GDP is not alarming, and India's foreign exchange reserves are high, the level and direction of capital inflows, as well as the outlook for crude oil prices, would crucially influence sentiment toward the rupee,” Nayar said.

Weakness in rupee will constrain capital flows into India: Sanjay Singh

Weakness in the rupee, surging bond yields in America and the US Federal Reserve's interest rate hike forecasts will constrain capital flows into India, says Sanjay Singh, head of global markets at the Indian arm of BNP Paribas, the French international banking group. Political uncertainty is also weighing on investor sentiment, says Singh.
Edited excerpts:

What are the key concerns for the market at this point?
Spiraling crude oil prices, issues in the banking sector, the pace of policy reform and the coming state elections. The increase in oil prices is one major concern, with a section of the market fearing that if oil marketing companies are asked to absorb future retail fuel price increases, this could point to a reversal of the government’s reform agenda. Volatility in the rupee and in the bond markets have added to investor concerns.
What’s the foreign portfolio investor (FPI) flow outlook?
Given our forecast of three more rate hikes in 2018 by the US Federal Reserve, there is a high possibility that emerging markets (EMs), including India, are likely to see pressure on capital flow. For India, specifically, we are not overly worried on this — over the past 12-18 months, we have seen a rise in domestic flow, which has been able to counter the FPI flow pressure.
What is the mood of foreign investors towards India?
There are some concerns but the overall structural growth story for the Indian market remains intact in the mind of investors. At BNP Paribas, we continue to remain overweight on India. As we head into multiple state elections, leading into the general election in 2019, investors’ key concerns are increased political uncertainty and possible populist measures. As a result, some are in a wait-and-watch mode.
Are recent policy decisions such as the new tax on equities or curbing of offshore trading in Indian products impacting investments?
While investors initially expressed concern about the long-term capital gains tax, the market has already taken this in its stride. There has been an impact on flow to some extent, but investors are not shying away, given India’s longer term structural growth story.
In the case of curbing of offshore trading in Indian products, we find investors who used to hedge their long India positions on the Singapore Exchange (SGX) might initially be forced to reduce their positions, as they await clarity on the transition and how the proposed collaboration between SGX and the National Stock Exchange will work operationally.
How much of the forex exposure of corporates is hedged? How is the rupee weakness impacting firms with unhedged positions?
We believe many companies with long-term liabilities are under-hedged, owing to the rupee staying in the range of 63-66 against the dollar in 2017-18. The current account deficit at under two per cent (of gross domestic product) and a positive balance of payments had further enhanced this stance. The recent weakness in the rupee demonstrates that the year ahead is going to be lot more volatile and moves are likely to be sharper. We are seeing some concern from corporates regarding their unhedged positions and there is likely to be a higher level of hedging in the near term.
What is the rupee outlook?
Our forecast currently stands at 66 to the dollar for 2018 and 67 for 2019.
If the rupee continues to slide, will RBI be able to stem the weakness, given the forex reserve situation?
RBI does not track depreciation in the rupee only against the dollar but against a basket of currencies. So, if the dollar strengthens across all EMs, the RBI will allow some weakness in the rupee. Its forex reserves are now more than $400 billion. This is likely to give RBI enough scope to arrest any steep fall in the rupee from here. However, RBI does not target any specific rupee level. The intervention, if and when it happens, is to stem sharp moves on either side.

RBI may tighten approvals for offshore borrowing to avoid any defaults

India’s central bank is reviewing its process for allowing companies to raise money overseas due to concern that any increase in rupee volatility may hurt borrowers’ ability to repay debt, a person familiar with the matter said.
The Reserve Bank of India is spending more time scrutinizing companies’ hedging practices, vetting borrowers more closely to prepare for any financial-market fallout from an increase in U. S. interest rates, the person said, asking not to be named as the matter is private.
The new process is resulting in slower approvals in recent weeks for offshore debt sales, people said. The RBI hasn’t issued loan registration numbers to some borrowers recently, they said. Companies need to obtain LRNs for raising debt overseas under the country’s external commercial borrowing guidelines.
“RBI’s prime concern is to avoid any defaults by companies offshore, ”said Raj Kothari, head of trading at Jay Capital Ltd. in London.
“Such scrutiny will further improve the trust of international investors in Indian issuers."
Overseas bond sales have stalled this month after Indian firms raised $15.6 billion last year, most since 2014, taking advantage of record-low borrowing costs.
Concern about the pace of inflation and the outlook for borrowing costs in the U. S. sent tremors through global markets in early February, and the rupee is one of the worst-performing major global currencies so far this year.
While offshore dollar bond issuance so far this year has maintained pace with last year, any restrictions on borrowing rules could impact some of India’s biggest borrowers including Bharti Airtel Ltd, ONGC Videsh Ltd., Reliance Industries Ltd, Indian Railway Finance Corp Ltd. and Suzlon Energy Ltd. which have debt coming due this year.
An email and text message to RBI spokesman Jose Kattoor was unanswered. The RBI already keeps a close watch on Indian firms borrowing abroad and has a pricing cap on offshore borrowing, restricting the number of companies looking to access foreign debt. This means that only 5 percent of dollar bond deals from Asia excluding Japan come from Indian borrowers.
Central bank rules state that Indian firms can’t sell three-to five-year debt abroad with an all-in cost of more than 300 basis points over the six month London interbank offered rate and 450 basis points for notes with tenors of more than five years.
In a speech in December, Deputy Governor Viral Acharya said that the rate of short term overseas debt growth should not exceed the pace of reserves growth. India’s short term debt was at around $100 billion or around a quarter of the total foreign exchange reserves of $420 billion, RBI’s Acharya said.

Rupee continues to rise, ends at near 3-year high of 63.37 against dollar

The rupee continued its rise for the second day against the beleaguered dollar and ended at a 32-month high of 63.37 on Friday, up 4 paise on steady unwinding of the American currency by exporters.
A record-setting spree on local bourses too bolstered sentiment on the forex trading front.

This is the highest finish for the home currency since April 29, 2015 when it had settled at 63.30.
Overall forex sentiment got a leg-up ahead of the advanced gross domestic product (GDP) growth estimates for 2017-18, which was released after the market hours.
The projections are very crucial in view of upcoming Union Budget and also the first official full-year growth estimates forecast after the GST regime.
Economic activity regained its footing in the second quarter of the current fiscal after GDP rebounded to 6.3 per cent July-September period, sending out a comfort signals about bottoming out of economic slowdown.
The Indian rupee has strengthened by 55 paise since the start of 2018.
Brent crude, an international benchmark, is trading marginally down at USD 67.72 a barrel in early Asian trade.
In the meantime, domestic equity markets continued their new year party with both the flagship indices conquering new highs on the persistently supportive liquidity driven rally.
Buoyant global cues too supported the upbeat trend as most Asian bourses had a great tailwind session after Dow Jones closed above the 25,000-mark.
Sensex shot up over 184 points to finish at 34,153.85, while Nifty jumped 54 points to 10,558.85.
Extending its bullish momentum, the rupee opened on a high note at 63.36 a dollar against Thursday's close of 63.41 at the Interbank Foreign Exchange (forex) market on sustained selling of the American currency by exporters and banks.
A strong follow-through traction later pushed the local unit decisively to hit an intra-day high of 63.31 in mid-morning deals before suddenly reversing the trend to touch a fresh low of 63.42 for a brief period.
But, later it bounced back to close comfortably at a new 32-month high of 63.37, showing a gain of 4 paise, or 0.06 per cent.
For the first week of 2018, the rupee has appreciated by a healthy 50 paise.
The dollar index, which measures the greenback's value against a basket of six major currencies, was up at 91.75 in early trade.
Globally, the greenback remained higher against other major currencies ahead of the highly-anticipated US jobs data due later in the day.
In cross-currency trades, the rupee firmed up further against the pound sterling to end at 85.81 per pound from 85.89 and the Japanese yen rose sharply to finish at 55.96 per 100 yens from 56.31 earlier.
The home unit also recovered against the euro to close at 76.37 compared to 76.39 yesterday.
Elsewhere, the common currency euro loitered near its three-year peaks against the US dollar.
In forward market today, the premium for dollar edged lower due to mild receiving from exporters.
The benchmark six-month premium payable in June eased to 133-135 paise from 134.50-136.50 paise and the far forward December 2018 contract also edged down to 269-271 paise from 270.50-272.50 paise.