Rupee closes up against United States dollar

The rupee closed at 65.67, up 1.2% from its previous close of 66.46, its steepest closing gain since 18 November 2013.

“The US Fed’s decision to delay raising rates is positive for interest rates in India which we expect to come down”. An emerging-market sell-off sparked by last month’s shock devaluation of the Chinese yuan and bets the United States central bank would tighten policy at its September 16-17 meeting saw global funds dump a net $3 billion of Indian shares since end-July, data compiled by Bloomberg show.

Most Asian currencies closed higher.

Mumbai: The Indian rupee firmed up further from its early gains by 46 paise to 66 against the American currency in late-morning deals on heavy dollar selling from banks and exporters amid surging equities. Forex market was closed on Thursday on account of Ganesh Chaturthi.

The benchmark Sensex index rose 254.94 points, or 0.98%, to close at 26,218.91 points. Higher USA rates reduce the allure of emerging-market assets.

The yield on10-year benchmark 7.72 per cent Government security due in May 2025 dropped six basis points to its lowest since June 22 at 7.69 per cent from 7.75 per cent on Wednesday. However, following the Fed’s decision there has been a relief rally. “What we need to do is to continue doing what we are doing, which anyway is the intention, regardless of the Fed”, said Raghuram Rajan, Reserve Bank of India governor, at an event on Friday.