Rupee is trading at 67.90 against the US dollar in early session.
The additional taxes under the IDS II would fund the 7th Pay Commission as well as recapitalise PSU banks without cutting back on public capex.
Mumbai: The rupee advanced 5 paise to 67.90 against the US dollar in early session on increased selling of the American currency by exporters and banks.
Besides, a higher opening in domestic stocks and fresh foreign fund inflows kept the domestic unit in good spirits, forex dealers said.
However, the dollar's recovery against some currencies overseas restricted the rupee's upmove.
The rupee continued its impressive run against the broadly weak dollar for the second straight day yesterday, surging by a solid 15 paise to end at 67.95 amid hopes for a speedy rollout of GST.
Meanwhile, the benchmark BSE Sensex rose 133.63 points, or 0.49 per cent, to 27,369.29 in early trade.
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