Rupee rises 1.6% on fund inflows

The rupee rose to a 12-week high against the dollar, owing to higher fund inflows that reflected the return of risk-taking appetite globally. Today, the rupee closed at 49.32 per dollar, 79 paise higher than Wednesday’s closing level. This was the biggest single-session gain since December 12. “The Federal Open Market Committee’s meeting late on Wednesday, which indicated near-zero interest rates till the end of 2014, brought about optimism in the global environment,” said India Forex Advisors.