The Indian rupee on Friday strengthened further against the US dollar to appreciate up to Rs 83.48 per dollar during the day, before settling at 83.57 per dollar—a two-month high. The local currency witnessed its highest weekly gain in the current calendar year. The domestic unit appreciated by 0.4 per cent against the dollar during the week.

Rupee strengthens against US dollar, supported by domestic equity market, lower crude oil prices, and Fed rate cut.

The Indian rupee is expected to open higher on Friday and add to its weekly advance, boosted by healthy risk appetite and bets the U.S. Federal Reserve will push borrowing costs further lower.

The stock market, Indian rupee, and gold price are all likely to do better following the much-anticipated rate cut by the Fed in the US. Here’s why optimism may be warranted

The dollar dropped after the Federal Reserve on Wednesday cut interest rates by half a percentage point, citing greater confidence that inflation will continue to recede to the U.S. central bank's 2% annual target.