Rupee gains for 4th day against dollar, up 17 paise on Fed stance

Extending its string of gains to the fourth straight session, the Indian rupee on Thursday appreciated by 17 paise to end at 62.52 against US dollar after the Federal Reserve's dovish stance on rates eased outflow concerns.

Persistent selling of dollars by banks and exporters due to weakness of dollar in the overseas market also helped the domestic currency end the day higher, forex brokers said.

The dollar was weak after US central bank's indication that rates would rise much more slowly over the next two years than Fed had forecast in December, they added.

The Indian rupee rupee resumed higher at 62.38 per dollar as against the last closing level of 62.69 per dollar at the Interbank Foreign Exchange (Forex) Market.

It firmed up further to 62.35 per dollar on initial heavy selling of dollars from banks and exporters.

While it lost some fizz on fag-end dollar demand as it dropped to 62.67, it quickly gained lost ground and ended at 62.52, showing a net gain of 17 paise or 0.27 per cent.

Rupee has now gained by 45 paise, or 0.71 per cent, in four days. Participants in emerging markets like India have been jittery over an early US rate hike as such a move would lead to sudden capital outflows, analysts said.

Pramit Brahmbhatt, Veracity Group, CEO said: "The trading range for the spot USD/INR pair is expected to be within 62.20 to 63.00."

The dollar index, a gauge of six major global rivals, was up by 0.20 per cent today. Meanwhile, the Indian benchmark Sensex fell by 152.45 points, or 0.53 per cent, to close at 28,469.67.