Rupee Strengthens Against U.S. Dollar

The Indian rupee closed stronger against the dollar on Thursday after the U.S. Federal Reserve kept its key interest rate steady for the fifth straight time.

The local currency strengthened by two paise to close at Rs 83.15 against the U.S. dollar, after opening at Rs 83.08. It had closed at 83.17 a dollar on Wednesday, according to Bloomberg data.

The Fed holds interest rates steady, with an emphasis on the ongoing strength of the US economy and labour market, according to Kunal Sodhani, vice president of Shinhan Bank.

"The dollar plummeted on the dovish tone by Powell. DXY dropped towards 103.00 levels," he said. "Inflation & GDP forecast revised higher. For USDINR, 82.90 acts as a support while 83.20 a resistance."