Rupee gains sharply as slowing US inflation softens Fed hike fears

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

The rupee strengthened sharply against the dollar on Thursday as a lower-than-expected rise in US consumer inflation raised hopes of the Federal Reserve slowing down the pace of rate hikes, dealers said.

At 0930 am IST, the rupee was trading at 79.27 per US dollar as against 79.52 per dollar at the previous close. The domestic currency was also given a boost owing to a sharp rise in equities.

The BSE Sensex and the NSE Nifty were each trading 1 per cent higher at 0930 am IST.

Data released late Wednesday showed that US CPI inflation increased by a lesser-than-expected