Tue, 03 Jul 2012 18:43:27 GMT | By IANS

Rupee rises to 7-week high of 54.36 against dollar

Mumbai: The rupee rose to a seven-week high of 54.36 against a dollar Tuesday as some clarity on taxation rules and the measures announced by the government to attract overseas investments boosted confidence in the Indian currency.

Rupee rises to 7-week high of 54.36 against dollar

The partially convertible rupee rallied for the fourth trading sessions in a row. It closed 1.07 percent higher at 54.36, the highest level in seven weeks.

The rupee has rebounded sharply after hitting a record low of 57.33 against a dollar June 22.

The finance ministry proposal that the controversial general anti-avoidance rules (GAAR) would not be applicable on participatory notes, through which many foreign investors invest in India, boosted foreign investors confidence in the markets.

The guidelines also calls for a monetary threshold for implementation of GAAR.

The Reserve Bank of India's (RBI) move to hike overseas investments limit in government bonds also sent a positive signal to the market and helped revive the battered currency.

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