MUMBAI: The rupee on Friday strengthened by 5 paise to touch one-month high of 54.09 against the dollar in early trade at the Interbank Foreign Exchange market on continued selling of the US currency by exporters and banks.
Forex dealers said firm local equities, signs of consistent capital inflows and sustained dollar selling by exporters also boosted the rupee sentiment.
Meanwhile, the BSE benchmark index Sensex extended yesterday's gains by rising 75.07 points, or 0.38 per cent, to 19,561.87 in early trade on Friday.
The rupee had gained 40 paise to close at 54.14 against the dollar yesterday after BSP chief Mayawati decided to lend her party's support to government on FDI issue in the Rajya Sabha amid sustained selling of the US currency.
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