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At the Interbank Foreign Exchange (Forex) market, the domestic currency was quoted at 48.39 a dollar, a gain of 15 paise over the previous close of 48.54/55.
The rupee lost 65 paise against the greenback on Monday.
Dealers said hopes of fresh capital inflows by foreign funds and dollar selling by banks helped rise against the US currency.
However, dollar's gains against other major currencies, capped the rupee surge to some extent.
The Bombay Stock Exchange opened higher by 130 points.


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