Rupee up 61 p, ends at nearly 2-wk high of 54.84 on $ inflows

the US economy to avert tax hikes and spending cuts.

"The very important India GDP figures for July-September 2012 period will come out tomorrow. Weaker data would hamper the positive sentiments build on the hopes of new reforms," said Abhishek Goenka, Founder & CEO, India Forex Advisors.

Meanwhile, the Indian benchmark sensex today zoomed by 328.83 points or 1.75 per cent to end at a 19-month high of 19,170.91 after Goldman Sachs upgraded its recommendation on India to overweight from market-weight.

Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee appreciated sharply tracking easing of political logjam and positive global market cues supported by the rising optimism that the US senate and Whitehouse will come up with budget deal avoiding the fiscal cliff.

"The Euro and GBP strengthened against dollar on risk on sentiments in global markets."

The premium for the forward dollar ended narrowly mixed.

The benchmark six-month forward dollar premium payable in May eased to 164-166 paise from last close of 165-167 paise.

However, Far-forward contracts maturing in November edged up to 308-310 paise from 307-309 paise.

The RBI has fixed the reference rate for the US dollar at 55.2020 and for euro at 71.4700.

The rupee shot up further against the pound sterling to 87.85 from previous close of 88.83 and also hardened against the euro to 71.24 from 71.78.