Paring all previous losses, the
rupee on Friday gained 53 paise to close at 50.87/88 against the US dollar as the stock market recovered, following government's assurance that it will not tax equity investments through participatory notes (P-Notes).
Besides, fresh dollar selling by exporters amid bearish cues from overseas forex markets also aided the rupee's value, dealers said.
At the Interbank Foreign Exchange (Forex) market, the local unit touched a low of 51.30 in the intra-day before ending at 50.87/88, a gain of 53 paise, or 1.03 per cent from its previous close.
The rupee had touched an 11-week low of 51.40/41 yesterday.
Meanwhile, the BSE benchmark index
Sensex on Friday shot up by 345.59 points to 17,404.20 after Indian Finance Minsiter Pranab Mukherjee cleared the air on the issue of P-Notes and said, "Indian tax authority would not go beyond financial investor (FIIs) to check the details about the P-Note holders.
Accordingly, a question of liability for tax in India of the P-Note holder would not arise. Necessary clarification will be issued".
The dollar index was remarkably down by almost 0.4 per cent against its major rivals while New York crude oil was trading above $103 a barrel in European market on Friday.
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