The Indian rupee hit a two-month high on Thursday, aided by likely portfolio inflows and a rally in the Chinese yuan after the Federal Reserve delivered a 50 basis points interest rate cut. The rupee ended at 83.

At the interbank foreign exchange market, the Indian currency opened at 83.70 and inched up to 83.69 before trading at 83.70 against the greenback, registering a gain of 6 paise from its previous closing level.

Rupee strengthens against dollar on lower oil prices, foreign fund inflows, despite greenback's gains and Fed rate cut.

The Indian rupee's recovery on Thursday will have to contend with a broadly higher U.S. dollar despite the Federal Reserve delivering a 50-basis-point rate cut. The 1-month dollar/rupee non-deliverable forward (NDF) declined to 83.

The Indian Rupee strengthened by 10 paise to hit a two-month high of 83.66 against the US dollar on Thursday, driven by the Fed''s rate cut and strong domestic equities.

The Federal Reserve began its easing cycle with a somewhat unexpected 50 basis point rate cut, implicitly acknowledging that rates may have been held too high for too long