Rupee closes 39 paise higher at 63.73 against US dollar

The rupee appreciated 25 paise at 63.87 against the dollar in early trade on Thursday at the Interbank Foreign Exchange.

The rupee strengthened by 39 paise at more than two-week high of 63.73 against the American currency on persistent selling of dollars by banks and exporters amid expectations of resumption of foreign capital inflows in view of sustained rise in the equity market.

Besides, lower dollar in the overseas market affected the market sentiment. The rupee resumed higher at 63.95 as against Wednesday's closing level of 64.12 at the Interbank Foreign Exchange (Forex) and firmed up further to 63.70 before concluding at more than two-week high at 63.73, a gain of 39 paise, or 0.61%.

The local currency has gained 53 paise, or 0.82% in two days.

The dollar index was trading lower by 0.49% against its major global rivals in the late Asian trade.The dollar extended its losses against the yen and the euro in Asian trade on Thursday after a lack of clear commitment by the Federal Reserve to raise interest rates in September
indicated continued caution at the US central bank.

In New York market, the dollar weakened against the yen and euro yesterday after Federal Reserve policy makers indicated in their latest policy statement that the pace of interest-rate hikes might be slower than previously expected.

Meanwhile, the benchmark BSE Sensex ended higher by 283.17 points, or 1.06%, at 27,115.83.