US Fed Impact: Rupee on a High, Sensex Soars

After a surprising decision by the US Federal Reserve, which decided to continue buying bonds at the current rate of USD 85 billion a month for now instead of announcing a $10-15 billion reduction to its asset purchase programme, the Indian rupee touched a new high against the USD at 61.69 before falling back to 61.93 at 10:45 AM.

The Rupee opened at 169 paise up at 61.69 vs the US Dollar in the morning, but later dropped some points to trade at 61.93, which is still considered a high.

The BSE Sensex gained over 600 points in the initial trading, but later dropped some points to trade at 20,500 – up 538 points at around 10:45 AM. The Nifty too witnessed a rise of 173 points to reach 6,072 points at the same time.