Rupee sees biggest gain in 7 months; ends at 63.11

The rupee on Thursday rose by 50 paise, the steepest single day gain in the last seven months, to end the day's trade at 63.11 against the dollar, in tune with strong recovery in stocks after the US Volatility in currency, equity and commodity subsided after Janet Yellen said the Fed is unlikely to start its rate hike process for "at least the next couple of meetings".

The US Federal Reserve in its two-day monetary policy meet that concluded yesterday said it was on course to raise interest rates though not right away. Fresh dollar selling by exporters and some banks also aided the rupee.

At the Interbank Foreign Exchange (Forex) market, the local unit commenced higher at 63.35 a dollar from previous close of 63.61 and immediately touched 63.39.

In tandem with a sharp rise in local equities, the local currency settled at 63.11, a gain of 50 paise or 0.79 per cent. In the last three days, it had fallen by 132 paise or 2.12 per cent.

Meanwhile, Indian benchmark BSE Sensex surged by 416.44 points or 1.56 per cent. Foreign portfolio investors sold shares worth $253.36 million on Wednesday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group CEO, said: "Fed’s positive statement helped improve the sentiment in the market." The benchmark six-month premium payable in May ended at 197.5-199.5 paise as against last close of 202-204 paise. Forward contracts maturing in November 2015 settled at 402-404 paise as against 406-408 paise previously.

The Reserve Bank of India fixed the reference rate for dollar at 63.31 and for euro at 78.10. The rupee closed against the pound at 98.79 compared to 100.02 previously. Against euro, the rupee closed t 77.79.