Rupee rises to near 1-month high, below 55/dollar

The rupee rose to its strongest level in nearly a month on Tuesday on the back of dollar inflows into domestic equities, following clarity on certain taxation rules and supported by improved sentiment for foreign investments.

At 11:12 a.m., the partially convertible rupee was at 54.96/97 per dollar, after hitting 54.9550, its highest since June 7 and stronger than 55.43/44 at close on Monday.

Portfolio investors have turned bullish after the government released draft rules last week and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for such investors.