Indian rupee rallies 46 paise against US dollar in early trade

Written by PTI | Mumbai | Updated: Jun 19 2014, 15:33pm hrs
Indian rupeeIndian rupee seen trading at 60.38/60.41 against US dollar in the offshore NDF market. (Reuters)
Indian rupee regained strength to trade 46 paise higher at 59.93 against US dollar at the Interbank Foreign Exchange market today on increased selling of the US currency by exporters and banks.

Forex dealers said a higher opening in the domestic equity market and dollar's weakness against other currencies overseas after the US Federal Reserve kept its easing policy unchanged also supported the rupee.

The Fed on Wednesday said it would leave its benchmark interest rate unchanged but cut its monthly stimulus programme to $35 billion from $45 billion.

The rupee lost 36 paise to end at an over seven-week low of 60.39 against the dollar yesterday as growing unrest in Iraq pushed up crude and caution prevailed in the currency markets ahead of the outcome of US Fed meeting.

Meanwhile, the benchmark BSE Sensex recovered by 125.27 points, or 0.50 per cent, to 25,371.52 in early trade today.