The Indian national currency has shown some signs of strengthening by gaining 55 paise against the US dollar backed by continued capital inflows amid government measures to revive the Indian economy.

The Indian rupee opened stronger at 55.41 at the Interbank Foreign Exchange (Forex) market and rose 57 paise to 54.86, which is its strongest position since June 7. The rupee ahs closed at 55.43 against the dollar following selling of the American currency by exporters and some banks yesterday.

Dealers in the foreign exchange market said that the continued inflow of foreign funds helped the currency rise besides several steps by the government to boost the economy. Other factors including, strengthening of euro and other currencies against the dollar and a stable domestic stock market also helped the rupee gain against the US dollar.

Dr. Singh has already pushed the finance ministry into action to calm investors, who have expressed serious concerns over the regulatory changes in the country. The appointment of team of Montek Singh Ahluwalia and Rangarajan has raised people's expectations that the national economy could get a much needed boost.