The rupee continued its dream run for the fourth straight session by rising 28 paise to a fresh 16-month high of 65.41 a dollar on frantic selling of the US currency by exporters and banks amid dovish outlook by Fed on future rate hikes. Overall sentiment in the forex market was largely optimistic despite the US Federal Reserve hiking interest rate for the third time since the financial crisis.
Besides, robust capital inflows and strong export growth data along with rallying local equity markets further supported the trading sentiment. Recording positive growth for six months in a row, India's merchandise exports registered a double-digit growth by jumping 17.48 per cent to $24.5 billion in February. The rupee resumed firmly higher at 65.40 against the Wednesday's close of 65.69 at the Interbank Foreign Exchange (FOREX) market. It gained further ground to hit an intra-day high of 65.21 on the back of heavy dollar unwinding by speculative traders.