Mumbai: Rupee on Wednesday strengthened by 21 paise to hit a fresh two-week high of 59.10 in morning trade at the Interbank Foreign Exchange market. The recovery mainly took place after the government decided to liberalize FDI limits in several sectors.
Forex dealers said that the liberalization of FDI limits in a dozen sectors, including allowing 100 percent investment in telecom and higher limits in 'state-of-the-art' defence manufacturing, in a bid to lure capital inflows and also in an attempt to arrest rupee’s slide and to boost national economy. This eventually went on to strengthen the local currency.
They said that a higher opening in the domestic equity market also helped the rupee to strengthen. Rupee had gained 58 paise to end at 59.31 against the dollar on Tuesday, the biggest gain in more than a fortnight after the RBI announced a slew of measures to curb rupee's volatility.
Meanwhile, the BSE benchmark index Sensex recovered by 118.79 points, or 0.59 percent, to 19,970.02 in the morning trade on Wednesday.


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