Rupee rises 13 paise to 2-week high of Rs 68.54 ahead of RBI policy

Making a spirited comeback ahead of the RBI's policy announcement, the rupee gained 13 paise to close at a fresh two-week high of 68.54 against the dollar on expectations that the US Fed is likely to keep rates unchanged.

Notwithstanding initial listlessness, the home currency staged a smart recovery towards the tail-end trade despite heavy month-end dollar demand from importers and corporates.

A rally in domestic equities further supplemented the recovery momentum.

The Reserve Bank of India's Monetary Policy Committee (MPC) for the third bi-monthly monetary policy statement will be unveiled on Wednesday.

A bearish dollar overseas also influenced the trading sentiment. The dollar