Reuters Market Eye - Rupee extends gains to trade at 54.55/56 vs its previous close of 54.7550/7650 after the government defers implementation of controversial GAAR till April 2016.
The BSE Sensex extends gains to over 1 percent post the news.
Traders say good custodian bank flows are seen hurting the dollar.
They say 54.50 is likely to be the next immediate support which if broken can take the pair to 54.25 levels.
(Reporting by Swati Bhat)
Trending On Reuters
One of India's most powerful politicians, Jayalalithaa Jayaram, was sworn in as chief minister of Tamil Nadu following a nine-month break, after a court overturned her conviction in a corruption case. Full Article
Gold demand slows as China eyes equities; lack of weddings in India weighs Full Article