Rupee scales new 2-1/2 month high as dollar crumbles

The rupee on Thursday staged an incredible comeback after its three—session lustreless trade and ended at a fresh two—and—a—half month high of 64.11 a dollar after the US currency took a big knock amid the Fed indicating it will maintain a slow pace of monetary tightening.

The Federal Reserves’s statement came after the two—day policy meet where the central bank kept key policy rates unchanged but expected to begin winding down its huge bond holdings



soon.

The domestic currency appreciated by a solid 26 paise, or 0.40 %

This is the highest closing for the home currency since May 16, when it had settled at 64.08.

The beleaguered dollar took a battering against its all major rivals including emerging market currencies and crashed to a fresh 13—month lows after a dovish tone from the Fed allowed investors to push back rate rise bets and extend the recent risk—taking mood.