Rupee rises to two-week high after dovish Fed statement

Mumbai: The rupee strengthened to its highest level in two weeks on Thursday after a dovish Fed statement, but further gains will depend on foreign fund flows into equity markets during the day, traders said.

The US Federal Reserve on Wednesday moved a step closer to hiking rates for the first time since 2006, but downgraded its economic growth and inflation projections, signalling it is in no rush to push borrowing costs to more normal levels.

The partially convertible rupee was at 62.42/43 per dollar by 0340 GMT, after hitting 62.35, its strongest level since March 5 and above its close of 62.69/70 on Wednesday.