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Indian rupee strengthened against the US dollar on Thursday tracking firm domestic equities after the US Federal Reserve decided to cut interest rate by 0.5% after more than four years in line with market expectations. US Fed Chair Jerome Powell also indicated that the United States is on track to achieve the targeted level of inflation at 2%. Moreover, lower crude oil prices and foreign fund inflows have also supported rupee sentiments. Foreign Institutional Investors were net buyers in the capital markets on Wednesday, as they purchased shares worth Rs 1,153.69 crore, exchange data showed. Meanwhile, data showed net direct tax collection grew 16.12% to over Rs 9.95 lakh crore so far this fiscal on higher advance tax mop-up. However, a stronger dollar capped the gains.

The partially convertible currency is currently trading at 83.66, stronger by 10 paise from its previous close of 83.76 on Tuesday. The currency touched a high and low of 83.7350 and 83.6550 respectively.