Strong rupee recovery after weeks of fall

Gains 161 paise to close at 61.77

After weeks of alarming fall against the dollar, the rupee on Thursday recorded an impressive recovery gaining 161 paise to close at a one-month high of 61.77 against the dollar.

Since Wednesday’s closing, the rupee appreciated by more than 2 per cent, thanks to the Federal Reserve’s Open Market Committee (FOMC) meeting, which decided to keep the ongoing quantitative easing (QE) unchanged.

All major currencies in Asia traded 1-2 per cent stronger against the US dollar on Thursday.
The domestic currency gained 161 paise per dollar in the opening trade against the previous close of 63.38 after the US Federal Reserve opted to keep its QE programme intact at $85 billion a month. There were expectations that the Federal Reserve would take its first step towards “tapering” the QE programme.

According to dealers, continuation of the QE programme and easing tensions in Syria boosted all emerging market currencies.

India Forex Advisers’ founder & CEO Abhishek Goenka said: “Wednesday’s FOMC meeting made all the difference as they decided to make no changes in their ongoing QE program.

This announcement came in as a surprise as markets were expecting a reduction in the ongoing easing program. As a result of which, all Asian currencies and stock markets witnessed strong gains.”