Indian equities too soared on Friday on the European agreement and clarity over GAAR. The 50-stock BSE Sensex soared over 350 points to firmly climb above the 17,300 mark, while the Nifty index soared above the 5,250 mark, gaining over 100 points.
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At 4:32, the rupee was at 55.82 to the dollar, 1.72 per cent or 97 paise above Thursday’s close of 56.80. It had earlier hit a day's high of 56.90/$, a level last seen on June 20 and is clearly on its way to post its biggest percentage gain since December 16, when it jumped 1.75 per cent.
The rupee had earlier posted its biggest gain in two weeks on Thursday on hopes long-stalled reforms will pick up pace after Prime Minister Manmohan Singh asked officials to chart a revival in the economy and perk up investor confidence.
The RBI has intervened repeatedly after the currency resumed declines to record lows against the dollar, mirroring declines in May. The currency hit it’s lowest ever at 57.33 on Friday.
The rupee has also failed to gain traction despite measures announced by the central bank on India to bolster the currency, including raising the investment limits on government bonds for foreign investors. It had also asked oil companies to get 50 per cent of their dollar needs from state-owned banks.
The Indian currency has now fallen about 7 per cent this year, making it the worst performing currency.
With inputs from Thomson Reuters