The rupee on Wednesday appreciated 24 paise to close at a nearly one-week high of 60.95 against the dollar following selling of the US currency by exporters and some banks, amid sustained heavy capital inflows.
The local currency that logged its best daily gain since March 6 seemed unperturbed by expectations that US Fed, which concludes a key meeting later tonight, will again taper its stimulus by another USD 10 billion and move away from technical guidance on when it will raise rates, said traders.
At the Interbank Foreign Exchange (Forex) market, the rupee commenced strong at 61.07 a dollar from previous close of 61.19, but fell back to a low of 61.17 on hesitancy in local equities.
It, later, bounced back to a high of 60.91 on fresh dollar selling by exporters and some banks coupled with foreign fund inflows worth Rs 1,069 crore in stocks today.
The rupee ended at 60.95 for the day, showing a rise of 24 paise or 0.39 pe cent. This is the strongest closing level for the rupee since 60.94 on March 11. Today’s 24-paise rise is the also best since 64-paise jump on March 6.