Rupee gains 20 paise vs dollar, Sensex up 126 points.

The rupee on Friday strengthened further by 20 paise to 65.81 against the dollar in early trade, largely supported by recent RBI measures.

Meanwhile, the BSE benchmark index Sensex rose by 126.10 points, or 0.66 per cent, to 19,105.86 in opening trade.

The domestic currency had gained 106 paise to close at 66.01 yesterday against the dollar after steps taken by new RBI Governor Raghnuram Rajan to attract US currency inflows.

To support the rupee, RBI announced steps such as enhanced limits for exporters to re-book cancelled forward exchange contracts and a special concessional window to swap foreign currency non-resident (FCNR) deposits.

Dealers said besides increased dollar selling by exporters, a higher opening in domestic equity market and dollar's weakening against some currencies overseas helped the rupee rise.

Sensex rises 126 points in early trade
The S&P BSE benchmark index Sensex rose by over 126 points in early trade on Friday on sustained buying by funds as well as retail investors amid further recovery in the rupee.

The 30-share barometer gained 126.10 points, or 0.66 per cent, to trade at 19,105.867 points with healthcare, IT, FMCG and consumer durables sector stocks leading the rally.

The barometer had rallied by over 745 points in the past two sessions.

The wide-based National Stock Exchange index Nifty moved up by 31.25 points, or 0.55 per cent, to 5,624.20.

Brokers said sustained buying by funds and retail investors after steps taken by new RBI Governor Raghuram Rajan to boost the currency and the overall economy, buoyed the trading sentiments.

The rupee strengthened further by 20 paise to Rs.65.81 against the US dollar in early trade.

Among other Asian markets, Japan's Nikkei and Hong Kong's Hang Seng were down up to 1.13 per cent.

The US Dow Jones Industrial Average ended 0.04 per cent higher on Thursday.

Source : indiatoday.intoday.in