Indian rupee gained impressively today, surging 74 paise to close 49.34 against the US dollar today. The rupee surged to a two-and-a-half month high of 49.30 per US dollar in intraday moves, extending its recent bounce as firm local equities helped prop up the sentiments for the currency. A slide in dollar overseas also helped the Rupee. The Euro recorded impressive gains against the dollar on the Fed's pledge to keep rates near zero for the next three years. Rupee broke under the key 50 per US dollar mark and managed to hold these gains. 

The local equity markets edged higher this week, registering their fourth straight weekly gain, as investors cheered the central bank's move to cut the cash reserve ratio (CRR) requirement for banks by 50 basis points at a quarterly policy review on Tuesday, 24 January 2012. Latest data showing food inflation hovering in negative terrain also boosted sentiment. Investors were also encouraged with data showing stepping up of buying of Indian stocks by foreign funds. 

The BSE Sensex rose 494.97 points or 2.96% to 17,233.98 in the week ended Friday, 27 January 2012. The S&P CNX Nifty rose 156.10 points or 3.09% to 5,204.70.

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