The rupee on Tuesday rose by 29 paise to 59.23 in early trade at the Interbank Foreign Exchange market on dollar selling by exporters, after the government assured it is “committed to containing the fiscal deficit” within target and is addressing how to finance CAD.
Strengthening of the euro and yen against the dollar overseas also supported the rupee, forex dealers said.
The rupee had lost 13 paise to close at 59.52 in the previous session as fag-end demand for the US currency from some banks and importers.
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Finance Minister P Chidambaram in an interview to PTI on Monday said, “sentiment will turn in favour” of the rupee as government is “committed to containing the fiscal deficit” within target and is addressing how to finance CAD.