India, June 5 -- The Indian rupee became stronger by 50 paise and reached 95.24 against the US dollar on Friday after the Reserve Bank of India (RBI) announced new policy measures. Forex traders said investor confidence improved after the RBI relaxed rules for Foreign Portfolio Investors (FPIs) to invest in government securities.

Traders also said the RBI's statement that India's foreign exchange reserves are strong enough to handle external shocks helped boost market sentiment, as per PTI report. In the interbank foreign exchange market, the rupee opened at 95.72 against the US dollar and later touched 95.24 during the day.

The 50-paise gain was much higher than Thursday's movement, when the rupee had risen only 2 paise to close at 95....