Rupee hits 2-1/2 mth highs on hopes for more measures

INDIA-RUPEE-RISE:Rupee hits 2-1/2 mth highs on hopes for more measures

The rupee extended gains to hit a new two-and-a-half month high on Friday afternoon on hopes the government would continue to announce more policy reforms that would attract more foreign fund inflows into the country.

Some traders cited market talk that the government could consider opening up the multi-brand retail sector to foreign direct investment as one of the reasons behind the afternoon gains.

At 2:53 p.m., the partially convertible rupee was at 54.51/52 per dollar, after hitting 54.47, its strongest since July 4.

The rupee's rise has been fuelled by the diesel price hike announced by the government late on Thursday and the aggressive monetary stimulus announced by the U.S. Federal Reserve.