Rupee hits 1-month high after RBI rate cut

Dollar's weakness against Asian currencies helps rupee

The rupee soared by 46 paise to trade at a fresh one-month high of 61.72 against the dollar in early trade today at the Interbank Foreign Exchange after the RBI cut interest rates by 25 basis points to 7.75%.

Forex dealers said a higher opening in the domestic equity market and dollar's weakness against other Asian currencies also supported the rupee.

The rupee had ended four paise lower at 62.18 on fresh dollar demand from banks and importers in yesterday's trade in view of fall in crude oil prices.

Meanwhile, the benchmark BSE Sensex zoomed by 600.77 points, or 2.19%, to 27,947.59 in opening trade today.