The Indian rupee improved by 16 paise to deal at 61.33 against the US dollar in untimely deal at the Interbank Foreign Exchange market, tracking optimistic sentiments after the government liberalized foreign direct investment (FDI) in protection and railways sectors.
Forex dealers said as well selling of dollars by exporters, power in other currencies alongside the American unit abroad also supported the rupee, but a lower breach in the family equity market capped the gains.
The BSE Sensex fell additional by 54.13 points, or 0.21 per cent, to 25,611.14 in premature deal on Thursday.
The Cabinet had on Wednesday cleared the long-delayed suggestion for raising FDI bound in defence to 49 per cent and entirely opened up the railway communications section, like high-speed trains, for foreign asset.
The rupee had plunged 65 paise in its biggest single-day drop in over six months to end at 61.49 in Wednesday's trade against the Greenback, hit by spike in dollar stipulate and pessimistic cues from local stocks.