Re jumps 158 paise to 1-month high vs USD as Fed defers taper
The rupee today zoomed by 158 paise to trade at over one-month high of 61.80 against the dollar at the Interbank Foreign Exchange market on hopes of increased capital inflows after the US Federal Reserve's surprise decision to keep its stimulus programme intact
The Fed says it decided to hold off on slowing the $85 billion US a month in bond purchases to see more conclusive evidence that the recovery will be sustained.
The bond purchases are intended to keep long-term loan rates low to spur borrowing and spending.
The rupee had settled just a paise lower at 63.38 against the dollar in yesterday's trade. Traders said besides expectations of increased capital inflows, the dollar's weakness against other currencies overseas, after the US Federal Reserve surprised markets by leaving its massive bond-buying programme unchanged, boosted the rupee's sentiment.
Meanwhile, stock markets were up by nearly 3 per cent in the opening trade. The BSE benchmark index soared by 574.13 points, or 2.88 per cent, to 20,536.29, while National Stock Exchange's Nifty rose by 183.65 points, or 3.11 per cent to 6,083.10 in opening trade.