Notwithstanding a decline in foreign capital flows, India’s current account deficit (CAD) narrowed to 1.6 per cent of GDP ($ 8.2 billion) on a quarter-over-quarter (QoQ) basis during the third quarter of 2014-15 from 2 per cent ($10.1 billion) in the second quarter. However, it almost doubled from 0.9 per cent in the same period of last year, the Reserve Bank said on Tuesday. During the nine months ended December 2014, CAD declined to 1.7 per cent from 2.3 per cent in the same period a year ago. With this, the country is likely to meet the 1.3 per cent CAD target set for FY15. Trade deficit of $39.2 billion in Q3 widened on a QoQ basis due to a larger decline in merchandise exports (7.3 per cent) than in merchandise imports (4.5 per cent); in terms of YoY too, the deficit in Q3 2014-15 widened due to a decline in exports (1.0 per cent). Re down 21p, hits two-month low Mumbai: The US dollar rose further against the rupee and hit multi-year highs against the euro and yen on Tuesday on the growing chance of the US Federal Reserve hiking interest rates by mid-year. Tracking weak stocks, the rupee fell 21 paise to end at two-month low of 62.76 against the greenback on sustained dollar demand from importers. ENS
