Rupee gains after better-than-expected trade gap

Reuters Market Eye - The rupee is trading at 61.87/88, sharply higher than the session low of 62.3050 but still lower than its close of 61.7925/8025 on Tuesday.

The better-than-expected trade data boosts sentiment for the local currency.
India's trade deficit narrowed to a two-and-a-half-year low in September as merchandise exports posted a third straight month of annual growth, provisional government data showed on Wednesday, strengthening the outlook for the rupee.

Traders will now wait for Friday's factory output data for further direction. The BSE Sensex is also trading up 0.4 percent as sentiment improves after the trade data.