The rupee rose by 142 paise to 61.96 in late morning trade on Thursday on fresh selling of the U.S. currency by banks and exporters triggered by sharp fall in dollar in overseas amid smart rise in the equity market.

In New York market, the U.S. dollar fell sharply against major rivals yesterday, especially against emerging-market currencies, after the Federal Reserve made no change to its monthly asset-purchase programme.

The rupee resumed higher at 61.70 per dollar as against the last closing level of 63.38 at the Interbank Foreign Exchange (Forex) Market and firmed up further to 61.64 before quoting at 61.96 per dollar (1050 hours).

It showed a sharp gain of 142 paise or 2.24 per cent from its last close.

It moved in a range of 61.64 and 62.08 per dollar during the morning deals.

Meanwhile, the benchmark BSE-30 share Sensex rose by 489 points or 2.45 per cent to 20,451.56 at 1050 hours.

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