Rupee is stabilising: Chidambaram

Finance Minister P Chidambaram on Thursday said the rupee is stabilising. The local currency on Thursday bounced back to 51-level after five-and-a-half months by gaining 42 paise to close at 51.74 against the US dollar stocks amid hopes that the Cabinet will clear the next wave of big-ticket reforms which is expected to see a rush of capital inflows.

"The rupee is stabilising", Chidambaram told reporters in reply to a particular query. He was briefing the media about the decisions taken by the Cabinet.

The Cabinet decisions opening up the pension sector to foreign investment and raising the FDI cap in insurance to 49 per cent.

When asked if the decision to increase the FDI ceiling in insurance sector and opening the pension segment to foreign investment will boost the market sentiment, Chidambaram said, "I don't make the market".

"We take decisions that are necessary to be taken. How the market will react, we will know when the market opens tomorrow," he added.

The Sensex on Thursday breached the 19,000 mark for the first time in nearly 15 months in anticipation of government unveiling next wave of big-ticket reforms.