Sentiments turned buoyant after RBI on Monday cut the marginal standing facility (MSF) rate, at which it lends emergency funds to banks, by 0.5 percent to 9 percent with an aim to improve liquidity and boost economic activities. The rupee had settled at 61.79 against the dollar on Monday, down by 35 paise over the previous close.

Traders said dollar selling by exporters and the RBI on Monday reducing the marginal standing facility (MSF) rate helped domestic currency to rise. They said, however, weakness in other Asian currencies against the dollar overseas capped the rupee's gain.

Meanwhile, the BSE benchmark index regained 20,000 mark by soaring 239.62 points, or 1.20 percent, to 20,134.72 in morning trade.


Latest News  from Business News Desk