The rupee was last trading at 60.05 against the dollar, a gain of 34 paise over Wednesday's close. The rupee had fallen sharply on Wednesday by 36 paise to end at an over seven-week low of 60.39 against the US dollar as growing unrest in Iraq pushed crude prices higher.

The US Federal Reserve said that interest rates would stay low for sometime, which pushed global indices higher and helped the rupee recover as well. The US Fed hinted that benchmark borrowing costs in the longer term would be lower than the Fed has indicated before, which pushed the S&P 500 to record highs.

The Indian rupee has seen a spectacular rally this year after diving to a historic low of 68.86 against the dollar in August last year. Check rupee rates here

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