The rupee today gained 33 paise to nearly six-month high of 51.41 against the dollar in early trade on strong capital inflows and a firming trend in the equity market after the government unleashed second wave of reforms yesterday.
Forex dealers said persistent dollar selling by exporters and banks and weak American currency against the euro also kept rupee strong.
The BSE benchmark Sensex rose for the fifth day in a row to fresh 15-month high of 19,086.11 in early trade today after the government yesterday decided to open the pension sector to foreign investment and raising FDI cap in insurance to 49% from 26%.
The rupee had gained 42 paise yesterday to close at over 5-1/2-month high of 51.74 against the dollar.