The rupee on Thursday zoomed by 158 paise to trade at over one-month high of 61.80 against the dollar at the Interbank Foreign Exchange market on hopes of increased capital inflows after the US Federal Reserve's surprise decision to keep its stimulus programme intact.
The rupee had settled just a paise lower at 63.38 against the dollar in Wednesday's trade.
Traders said besides expectations of increased capital inflows, the dollar's weakness against other currencies overseas, after the US Federal Reserve surprised markets by leaving its massive bond-buying programme unchanged, boosted the rupee's sentiment.
Meanwhile, stock markets were up by nearly 3 % in the opening trade.
The BSE benchmark index soared by 574.13 points, or 2.88 %, to 20,536.29, while National Stock Exchange's Nifty rose by 183.65 points, or 3.11 % to 6,083.10 in opening trade.