The Indian rupee hit a two-month high on Thursday, aided by likely portfolio inflows and a rally in the Chinese yuan after the Federal Reserve delivered a 50 basis points interest rate cut. The rupee ended at 83.

The Federal Reserve’s 50 basis point cut to its benchmark rate will give the People’s Bank of China greater opportunity to cut the reserve requirement ratio as early as this month with easing to its key policy rate to follow,

The Indian Rupee strengthened by 10 paise to hit a two-month high of 83.66 against the US dollar on Thursday, driven by the Fed''s rate cut and strong domestic equities.