The rupee gained 58 paise to trade at 70.05 against the dollar in early trade Thursday at the Interbank Foreign Exchange amid sustained selling of the greenback by exporters and banks. Forex dealers said, the US dollar weakened against other currencies overseas after US Federal Reserve Chairman Jerome Powell comments that the central bank's benchmark interest rate is likely to be near a neutral level.
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Following Powell's comments, the US dollar was trading weak against its peers and boosted the domestic currency.
At the Interbank Foreign Exchange, the rupee opened on a higher note at 70.15 and then gathered further momentum and touched a high of 70.05, up 57 paise over its previous close.
On Wednesday, the rupee had surged by 17 paise to close at 70.62 against the US currency as global crude oil prices slipped below the USD 60 per barrel mark amid a smart recovery in domestic equity markets.
Forex traders said robust foreign fund inflows and easing crude prices also supported the rupee.
Foreign portfolio investors (FPIs) bought shares worth a net of Rs 961.26 crore Wednesday.
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Globally, Brent crude, the international benchmark, was trading 0.41 per cent up at USD 59 per barrel.
Meanwhile, the benchmark BSE Sensex rose by 364.32 points, or 1.02 per cent, to quote at 36,081.27 in early trade today.