Rupee rallies to 65.24

Rupee rallies to 65.24

The domestic currency rupee on Friday gained 76 paise to end the day at 65.24 against the dollar on the back of higher capital inflows and announcement of possible steps to reduce the fuel import bill.

The dollar-rupee pair made a high of 66.31 levels and a low of 65.00 levels during the day, after hitting a low level of 68.85 in the last week, as there are signs that the rupee is correcting against the US dollar. Raghuram Rajan’s appointment as the Reserve Bank of India's 23rd governor was well received as he unveiled a set of measures to help the sinking rupee.

The day’s announcement regarding a currency swap agreement between India and Japan further helped to improve the sentiments and rupee recovered against the US dollar. Extending its previous session’s positive sentiment, the local currency opened 8 paise higher against the greenback at 65.92 from Thursday’s close of 66 per dollar.

Meanwhile, key benchmark indices of BSE and NSE extended gains on the back of FII buying in banking, capital goods and refinery shares amid a recovery in the rupee against dollar. The Sensex at BSE rose by 290.30 points or 1.53 per cent to close at 19,270 points, while CNX Nifty at NSE closed with 87 points gains at 5680 levels.

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