MUMBAI: The Indian rupee Tuesday rallied by a whopping 112 paise, its best single-day gains in over five years, to settle at 70.44 against the US dollar as softening crude oil prices eased concerns over India's current account deficit expansion.
Besides, sustained selling of the American currency by exporters and banks as well as the greenback's weakness against its key rivals globally ahead of the US Fed policy decision Wednesday also helped the domestic unit scale further heights.
The Brent crude, an international benchmark, was trading 2.26 per cent lower at USD 58.26 per barrel, a 14-month low.
At the Interbank Foreign Exchange (forex) market, the rupee opened on a firm note at 71.34 from. It gained further ground to hit a high of 70.44, a massive climb of 112 paise over its previous closing.
The Indian currency had gained 34 paise to close at 71.56 against the US dollar Monday.
Tuesday's 112 paise ascent marked the best day for the rupee since September 19, 2013, when it had surged by 161 paise against the US dollar.
Forex dealers said a drop in bond yields easing liquidity concerns in the market and bullish trend in equities trading also supported the rupee in maintaining its upward movement.
The benchmark Sensex Tuesday wiped off early losses to end 77 points higher at 36,347 Tuesday, the sixth consecutive session of gains. The broader NSE Nifty edged higher by over 20 points to end above the 10,900-mark.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.1940 and for rupee/euro at 80.7554. The reference rate for rupee/British pound was fixed at 89.8829 and for rupee/100 Japanese yen at 63.21.