The rupee is still at its near five-month high at 52.55-52.56 versus 53.01-53.02 last close. Hopes of more foreign fund inflows into local stocks with the Sensex up 1.2 percent.
Dealers say government sticking to second-half borrowing a big positive as move shows government serious about finances.
Bullish bets on the rupee hit a near eight-month high as investors hailed the government's fast tracked fiscal and economic reforms.
Euro holding on to gains in European trade after Spain is increasingly seen moving to seeking a bailout package.
