(RTTNews) - The Indian rupee extended late last week's gains against the US dollar on Monday, moving closer to 55.0/dollar mark for the first time in 6-days as the latter drifted lower against the euro on easing concern over the eurozone debt crisis.
Indian shares rallied as the government's refusal to roll back the petrol price hike despite continued protests and the strengthening of rupee for a third day in a row triggered hectic short covering ahead of the near-month F&O contracts expiry falling due on Thursday.
The benchmark 30-share Sensex ended the session up about 200 points or 1.23 percent at 16,417, with 24 of its components advancing. The broader Nifty index rose by 65 points or 1.33 percent to 4,986.
Meanwhile, global ratings agency Moody's said in a report today that the sliding rupee won't hurt India's sovereign ratings, as government foreign currency debt comprises only 7 percent of total government debt, amounting to 5 percent of gross domestic product.
The rupee gained almost 2.45 percent to reach a high of 55.01 against the US dollar from Thursday's record low of 56.39. On the upside, the rupee may find target around the 54.60 level.
