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Rebounding from one-month lows, the Indian rupee today 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%.
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%.
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 mln Wednesday, as per Sebi data.
The benchmark S&P BSE Sensex today zoomed by 480.92 points, or 1.81%, to end one-week high.
