The Indian rupee today bounced back 32 paise to close at 64.74 against the US dollar on fresh selling of dollars by banks and exporters on the back of recovery in the the equity market.
The rupee opened higher at 64.90 per dollar as against overnight level of 65.06 at the Interbank Foreign Exchange market.
It hovered in the range of 64.72 to 64.92 per dollar during the day, before concluding the day at 64.74, showing a gain of 32 paise or 0.49 per cent.
The rupee had dropped by 11 paise or 0.17 pct yesterday.
In New York, the US dollar fell after the release of the Fed minutes, while the euro gained. The minutes from the September meeting revealed that the FOMC did not raise rates in part because of global growth concerns.
Pramit Brahmbhatt, Veracity Group, CEO said, “Today the rupee gained against the dollar, taking cues from strong local equities. Dollar index is also trading weak for the day at USD 94.77 as outcome of the FOMC meet confirmed the delay in Fed rate hike which supported Rupee to gain over thirty paise for the day.
The trading range for the Spot USD/INR pair is expected to be within 64.30 to 65.30, he added.
Meanwhile, the Indian benchmark Sensex rose by 233.70 points or 0.87 per cent to close at 27,079.51. In forward market today, premium for dollar inched up on fresh paying pressure from corporates.
The benchmark six-month premium payable in March ruled steady at 199-201 paise while forward Sept 2016 inched up to 414.5-416.5 paise from 413-415 paise yesterday.
The RBI fixed the reference rate for the dollar at 64.7848 and for the Euro at 73.0837.
The rupee recovered against the pound sterling to finish at 99.34 from 99.59 yesterday while dropped further against the euro to 73.56 from 73.37.
However, it firmed up against the Japanese currency to settle at 53.59 per 100 yen from 54.28.