The currency jumped 2.3 per cent to about 35.45 per dollar this month, leading gains in Asia by a wide margin
Spot gold was down 0.4% at $1,794.78 per ounce, as of 0352 GMT, after rising about 1.6% last week. US gold futures fell 0.3% to $1,810.
The Japanese yen fell the most against a resurgent U.S. dollar on Friday, as a two-day rally in equities conceded to market expectations that the Fed will have to do a lot more to contain inflation.
Lower US CPI a relief, but rupee still seen testing 80/$1 on elevated CAD
The increase in the amount of money coming into the market has helped benchmark indices to rise sharply and rupee to appreciate against the US.
Currencies across the region jumped Thursday, following their developing-nation peers in the Americas and Europe, after the US data published Wednesday led to a slump in the dollar
The Indian rupee opened higher against the dollar on Thursday as a decline in the US inflation rate boosted Asian currencies, lifting risk appetite
Data released late Wednesday showed that US CPI inflation increased by a lesser-than-expected 8.5% in July as against a rise of 9.1% in June
Three month copper on the London Metal Exchange gained 1.3% to $8,089 a tonne by 1630 GMT, the highest since July 1, after earlier easing to $7,889
Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar.
Economists expect year-on-year headline inflation running at a scorching 8.7%, a small retreat from June's whopping 9.1% figure
10 gram of 22-carat gold traded at Rs 47,550 on Tuesday
Spot gold rose 0.5% to $1,783.62 per ounce by 10:02 ET (1402 GMT). U.S. gold futures edged 0.5% higher to $1,799.60.
Lower global crude prices and a rally in domestic equities restricted the losses to some extent, forex dealers said.
The Federal Reserve has already raised interest rates by 225 basis points since March 2020
The greenback was last 0.31% higher at 135.42 yen, and earlier rose to 135.585 yen, its highest since July 28, after surging 1.57% in the previous session, its biggest single-day gain since June 17
Markets quickly moved to price around a 70% chance Federal Reserve will lift rates by 75 basis points in September, sending two-year yields up 20 basis points on Friday and further inverting the curve
The benchmark Nifty50 Index has gained the most among major global markets, soaring 13.8 per cent since June 17, when it had dropped to its lowest levels in 13 months
After turning net buyers last month, foreign investors continued their positive stance on Indian equities and invested over Rs 14,000 crore in first week of August amid softening of the dollar index
The U.S. dollar index, which measures the greenback against a basket of currencies, was up 0.22% to 105.93, after sliding 0.68% on Thursday, the largest fall since July 19.