Rupee logs best single-day gain in 4 years as Fed hikes seen slowing

As dollar index breaches key technical levels, outlook on rupee improves

The rupee surged against the US dollar on Friday, registering its sharpest single-day gain in nearly four years, as a lower-than-expected US inflation print led to hopes of the Federal Reserve slowing the pace of monetary tightening.

The rupee settled at 80.81 on Friday, exactly 100 paise stronger than the previous close of 81.81 versus the dollar. This was the biggest single-day gain in the rupee since December 18, 2018, the Bloomberg data showed. The rupee’s closing level on Friday was also the strongest since September 21, 2022, the data showed.

So far in 2022, the rupee has depreciated 8 per cent