New Delhi: The rupee gained as much as 2.8 percent on Thursday, hitting its highest in a month, as the U.S. Federal Reserve's decision to not take back the stimulus.
The rupee stands to gain the most if foreign funds return to riskier assets in the wake of the Fed's surprise decision.
The rupee traded at 61.77 as of 12.30 p.m. after earlier pulling back to a high of 61.66. The partially convertible rupee had closed at 63.38 per dollar on Wednesday.
The Fed's surprising move also sent the Indian equity markets gaining heavily. The 30-share BSE index Sensex was up 591.15 points (2.96 per cent) at 20,553.31 and the 50-share NSE index Nifty was up 191.10 points (3.24 per cent) at 6,090.55.
The Fed's move also means that the RBI will have greater flexibility if it wants to roll back some of the cash tightening steps it initiated since mid-July to stabilise the plunging rupee.
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