CAD snippets

The current account deficit, the excess of spending overseas than earnings, fell to 3.6% of the gross domestic product in the March quarter, showed data from the Reserve Bank of India. That’s lower than the revised 6.5% in the December quarter, limiting the fiscal year deficit at 4.8% of the GDP.
The battered rupee rose to 60.15 to the US dollar, from a record low of 60.76 on Wednesday. The currency slide is due to the exit of some international investors who see better opportunities in the US, where yield on benchmark treasury has climbed a percentage point recently and stocks are at record highs.
The CAD at $18.1 billion is much lower than the consensus estimate of $21 billion and the previous quarter’s $31 billion. Unlike in the past, net invisibles largely comprising service incomes and remittances by Indians abroad declined 7.7% from a gain of 27.5% a year ago.
Overseas investors have sold at least $6.6 billion of Indian stocks and bonds in June. With the cost of funds rising in international markets, Indian companies’ overseas borrowing could fall and reduce the US dollar inflows.
The rising debt of Indian companies in relation to the overall foreign exchange reserves, which is at its lowest since 1997, also poses a threat to the rupee.