` scores 2 month-high gain of 49p per $

MUMBAI: The rupee Monday appreciated by 49 paise, the biggest single-day gain in two months, to close at 69.74 against the US dollar following sharp gains in equities and forex inflows after exit polls suggested another term for the ruling NDA government.

Forex traders said investors welcomed exit poll results that predicted a thumping majority for the current Bjp-led government.

At the interbank foreign exchange, the domestic unit opened at 70.36 and advanced to a high of 69.44 during the day. The currency finally settled at a nearly two-week high of 69.74, registering a rise of 49 paise or 0.70 per cent against the dollar over its previous close. On Friday, the rupee had settled at 70.23 against the US dollar.

This is the biggest singleday for the rupee since March 18 when the currency had zoomed by 57 paise or 0.82 per cent. According to WGC Wealth Chief Investment Officer Rajesh Cheruvu, India saw a remarkable strengthening in its currency after exit polls and some de-coupling of the INR from other emerging curren- cies could be seen over the next few trading sessions.

Sentiments were also buoyed by positive opening in domestic equities, and foreign fund inflows.

However, rising crude oil prices weighed on the domestic currency. Meanwhile, Brent crude, the global benchmark, was trading at 72.51 per barrel higher by 0.42 per cent.

Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.1666 and for rupee/euro at 78.4336. The reference rate for rupee/british pound was fixed at 89.7276 and for rupee/100 Japanese yen at 64.03.