The rupee gained a hefty 57 paise to move past the 55 level against the dollar for the first time in nearly four weeks on sustained capital inflows amid government measures to revive the economy,and continued selling of the American currency by exporters.
The local unit opened marginally higher at 55.41 at the Interbank Foreign Exchange (Forex) market,and rose by 57 paise to trade at 54.86,a level last seen on June 7.
The rupee had ended 18 paise higher at 55.43 against the dollar following sustained selling of the American currency by exporters and some banks in yesterday’s trade.
Forex dealers said apart from government’s steps to revive slowing economy and falling rupee,robust capital inflows by foreign funds also supported the local unit.
Strengthening of euro and other currencies against the dollar in the overseas market and firm domestic equity market also supported the rupee.
Meanwhile,the BSE benchmark Sensex was trading 79.99 points,or 0.46 per cent,higher at 17,478.97 at 1145 hrs.