Rupee jumps 13 paise against dollar ahead of US Fed policy meet outcome

Mumbai: The Indian rupee appreciated for the second day in a row and ended 13 paise higher at 60.92 against the Greenback following sustained dollar selling by exporters ahead of a decision on US interest rates by Federal Reserve.

A weak dollar overseas also aided the rupee rise while fresh sell-off by foreign funds in domestic stocks capped the currency's gains, forex dealers said. Dealers added that they are awaiting the outcome of Federal Open Market Committee two-day policy meet, which began on September 16.

Consensus expectations are that Fed will keep interest rates low for a while. At the Interbank Foreign Exchange (Forex) market, the domestic currency commenced strong at 60.95 a dollar from last close of 61.05. It moved in a narrow range between 60.8750 and 61.03 before settling at 60.92, showing a rise of 13 paise or 0.21 per cent.

On September 16, it had gained 8 paise or 0.13 per cent. For the seventh straight meeting, the Fed later tonight is expected to taper its bond buying program by USD 10 billion, bringing QE3 down to only USD 15 billion per month, experts said.

Meanwhile, the Indian equity benchmark S&P BSE Sensex on September 17 recovered by 138.78 points, or 0.52 per cent, after two days of heavy fall. FPIs/FIIs withdrew USD 120.70 million yesterday, as per Sebi data. The dollar index was trading down by a mere 0.03 per cent against its major global rivals ahead of Fed outcome. The Bank of England's (BoE) Monetary Policy Committee voted 7-2 at its September meeting to keep rates on hold and its quantitative-easing program unchanged, according to minutes released on Wednesday.