(RTTNews) - The Indian rupee extended yesterday's advance versus the US dollar, trading above the key 50.0 level for the second consecutive day as domestic shares rallied after the Reserve Bank of India cut cash reserve ratio for banks by 50 basis points to infuse more liquidity in the banking system.
Leaving key policy rates unchanged in its third-quarter monetary policy review, governor D Subbarao walked a tight rope in addressing growth and liquidity issues very well, analysts said.
Paring some of its intraday gains, the benchmark 30-share Sensex ended the day up 244 points or 1.46 percent at 16,996. The 50-share Nifty index jumped 81 points or 1.61 percent to 5,127.
The rupee reached as much as yesterday's fresh 2-month high of 49.8650 against the US dollar. The pair then reverted to Monday's closing quote of 50.0825 and stabilized around the 50.0 level.
