The rupee firmed up by 12 paise to 66.87 against the dollar at the forex market on Thursday, after the Rajya Sabha passed a Bill to facilitate rollout of the historic GST, on Wednesday.
In the biggest tax reform since Independence, the national sales tax or GST Bill was approved by the Rajya Sabha to replace a raft of different state and local taxes with a single unified value-added tax system to turn the country into world’s biggest single market.
Forex dealers said besides weakness in the dollar against some other currencies overseas and fresh selling of the US currency by exporters and banks with a higher opening in the equity market backing it up, provided added momentum to the rupee.
The rupee had dropped by 26 paise to end at 66.99 on renewed dollar demand from banks and importers amid sharp falls in equity market, on Wednesday.
Meanwhile, the benchmark BSE Sensex rallied 224.40, or 0.81 per cent to 27,921.91 in early trade, on Thursday.