Moving in line with equity market,the Indian rupee advanced by 46 paise to 61.59 per dollar on fresh selling of dollars by banks and exporters. This was on hopes of more foreign capital inflows into equity markets amid exit polls predicting a strong showing by the BJP in the recently concluded Assembly elections to four states.
The Indian rupee resumed higher at 61.75 as against the last closing level of 62.05 per dollar at the Interbank Foreign Exchange (Forex) Market and firmed up further to a one-month high of 61.53 before quoting at 61.59 per dollar at 1045hrs.
It hovered in a range of 61.53-61.86 per dollar during the late morning trade.
In New York market,the US dollar surrendered some of the gains scored after a report on private-sector payrolls underlined ideas the Federal Reserve could move sooner than previously thought to cut back on its monthly bond purchases.
The BSE Sensex rose by 369.87 points or 1.79 per cent to 21,078.58 at 1045hrs.
Indian rupee gains to 1-mth high as exit polls place BJP ahead
(Reuters) The Indian rupee gained to its strongest against the dollar in a month on Thursday as exit polls predicted a strong showing for the key opposition party in state elections held since November.
Results for state elections are due on Sunday. Confirmation of a strong showing by the opposition Bharatiya Janata Party would bolster the chances of victory in general elections due by May,according to analysts. BJP is perceived by many investors as being more business friendly.
The rupee gained to 61.75 against the dollar,its strongest level since November 5. It was last trading at 61.76/77 compared to its 62.05/06 close on Wednesday.
The rupee had recovered from early losses and gained 31 paise to close at a one-month high of 62.05 against the US dollar on Wednesday on fresh selling by exporters and banks,amid foreign capital inflows into local stocks.