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.