Rupee extends gains; domestic shares help

Reuters Market Eye - The rupee rises to 53.84/85 as gains in the domestic sharemarket on optimism ahead of the budget boosted the currency. It closed at 54.09/10 on Tuesday.

Traders say market hopeful of more pro-investment measures which will boost inflows into the country. Dollar demand from oil companies, however, is expected to limit the downside. Traders do not expect the pair to drop below 53.75 during the session.

The BSE Sensex was up 0.5 percent while Asian shares also rise following solid data in the U.S. and Federal Reserve's affirmation of its commitment to monetary stimulus.