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)