Rupee gains vs dollar as weak US GDP data softens Fed rate hike view

Dollar index falls as a contraction in US GDP eases Fed hike fears

The rupee on Friday registered its biggest single-day gain since October 20 last year, as a poor US GDP reading led to anticipation of the Federal Reserve slowing down the pace of its rate hikes.

The domestic currency settled at 79.27 versus the dollar on Friday, against 79.76 on Thursday. In the course of the day, the rupee headed closer and closer to the 78 per dollar-mark, climbing to a high of 79.17.

The data released after Indian trading hours on Thursday showed that the US economy contracted 0.9 per cent in the second quarter of 2022. This marked the