Rebounding from one-month lows, the Indian rupee on Thursday ended eight paise higher at 60.84 against the greenback following late dollar selling by exporters and a strong rally in local shares.
A fall in dollar value abroad against major rivals also helped rupee recover from early losses as US Federal Reserve pledged to maintain its easy monetary policy. Dollar index, a gauge of six major global units, was down 0.25 per cent.
At the Interbank Foreign Exchange (Forex) market, the domestic currency resumed weak at 61.09 a dollar from previous close of 60.92. It then dropped further to a one-month intra-trade low of 61.2050, a level not seen since August 13, 2014 when it had touched a low of 61.30.
The rupee later bounced back to a high of 60.8350 on strong rally in local stocks before concluding at 60.84, displaying a rise of eight paise or 0.13 per cent.
In previous two sessions, the rupee gained 21 paise.
The rupee’s rise against dollar came as capital outflow fears receded. The Fed’s pledge to keep interest rates near zero for a considerable time, gives relief to emerging markets, including India.
Renewed buying by foreign funds in local equities too aided the rupee rise. FPIs/FIIs, after selling shares worth $120.70 million on Tuesday, picked up shares worth $29.29 mn on Wednesday, as per SEBI data.
The benchmark S&P BSE Sensex on Thursday zoomed by 480.92 points, or 1.81 per cent, to end one-week high.
