The Indian rupee advanced against the U.S. dollar in late morning deals on Thursday, as regional stocks gained after the Fed's decision to delay raising interest rates.

The benchmark BSE Sensex was up 223 points or 0.78 percent at 28,730, while the broader Nifty index was up 72 points or 0.82 percent at 8,849.

The rupee rose to a session's high of 66.85 against the greenback. If the rupee rises further, 65.00 is possibly seen as its next resistance level.

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