The Indian rupee strengthened by another 9 paise to end at one-month high of 74.29 against the US dollar on Thursday, tracking gains in Asian peers after dovish US Federal Reserve's comments.
At the interbank forex market, the local unit opened at 74.32 against the greenback and witnessed an intra-day high of 74.22 and a low of 74.34.
It finally ended at 74.29 against the American currency, registering a rise of 9 paise over its previous close -- its best closing level since June 29.
"Indian rupee appreciated as global risk sentiments rebounded, while safe haven dollar declined reacting to the dovish Federal Open Market Committee (FOMC)," Dilip Parmar, Research Analyst, HDFC Securities said, adding that FOMC outcomes favoured the risk sentiments as they are not in rush to scale back asset purchases at-least for next two meetings.
"Spot USDINR is expected to trade with negative bias following weaker dollar index, risk sentiment and strong dollar inflows from initial public offering. The pair is expected to hold support at 74.15 and get resisted around 74.60," he noted.