Rupee goes up 6 paise to 63.81 in early trade

The rupee was trading nearly 6 paise up at 63.81 against the dollar in the early session on Tuesday after the IMF said India is going to get back the tag of fastest-growing major economy soon.

In a January update of the World Economic Outlook, the IMF said India is set to grow 7.4% in 2018-19, against 6.7% this year, outpacing China's.

Selling of the American currency by banks and exporters provided the rupee more support.

The rupee on Monday had settled 3 paise down at 63.87 against the dollar.

Meanwhile, domestic stock markets scaled fresh record highs in early trade reflecting global cues. The NSE Nifty index surpassed 11,000 for the first time ever while Sensex crossed the 36,000-mark.

Foreign portfolio investors (FPIs) bought shares worth a net Rs 1,567.51 crore yesterday, as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) sold shares worth a net Rs 461.87 crore.

Government bonds rose on Monday as a fall in crude oil prices eased concerns about inflation ahead of the next week's Union Budget.

GoI benchmark 7.17%, 2028 bond yield declined to 7.26 per cent on January 22, from 7.30 per cent on Friday.