Rupee continues upward trend; trades at 61.78 to the dollar

The rupee which has witnessed a phenomenal rally in morning trade continued its momentum, gaining 159 paise at 61.78 to the dollar, as the US Federal Reserve kept its bond purchase programme intact, sparking a rally across global currencies. Read more on Fed decision here

The dollar weakened across global currencies as the Fed decided to keep buying bonds to the tune of $85 billion, even as investors and economists believed that the Fed would reduce that quantum by at least $10 billion-a-month.

However, it failed to reduce its bond buying programme saying it will wait for "more evidence that progress will be sustained" before it starts to cut its asset purchases. The move was pleasantly surprising as economists and analysts in general were expecting a taper to the tune of $10 billion.

The rupee has now hit the highest levels since August 12 and analysts say that it could easily head past the 60 levels.

On Friday, the rupee will react to the RBI's Monetary Policy and take cues for the next week from there.
Most of the emerging market currencies gained ground today on the Fed inaction on its asset purchase programme. Check currency rates here

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