In late afternoon deals on Friday, the Indian rupee strengthened against the U.S. dollar amid a rally in regional stocks.
Indian market was up after the new draft guidelines on the general anti-avoidance rules (GAAR) announced late night yesterday suggested that the tax evasion rules would not apply retrospectively and will be triggered only above a certain income threshold.
Optimism resurfaced after European leaders agreed to a series of long-debated measures, including a plan to devote EUR120 billion for "immediate growth measures" and easing repayment rules for emergency loans to Spanish banks to help stimulate growth in the bloc's weakest economies.
The rupee spiked up to a 9-day high of 55.9055 per dollar with 55.5 seen as the next upside target level. The greenback-rupee pair ended Thursday's deals at 56.8075.
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