India's current-account deficit dropped 24 per cent in the April to June quarter from a record high in the preceding quarter, preventing the balance of payments from sliding further towards dangerous territory.

According to stats released by Reserve Bank of India (RBI), the country's current-account deficit narrowed from $21.7 billion gap in the three months through March to $16.4 billion in the quarter ended June 30.

The fresh stats are expected to Prime Minister Manmohan Singh's government, which has been struggling to provide a boost to the economy. Around a week ago, the government announced a raft of measures to boost the economy, including opening of retail sector, aviation and a segment of broadcasting sectors to foreign investors.

Tirthankar Patnaik, a strategist with Religare Capital Markets Ltd., said the new stats would enhance investor sentiment and the currency.

Commenting on the stats, Patnaik said, "Pain on the deficit front seems to be easing. If the government maintains the pace, it will be positive for sentiment and the currency."

On Friday, the rupee soared to a near five-month high. The Indian currency opened higher at 52.56 vs. US dollar, up from the previous day's close of 53.01. In the intraday trade, it further jumped to 52.50. However, it slipped again to end at 52.85 against a dollar.