The Indian rupee rose for the fifth straight session on Friday, helped by gains in Asian peers and likely portfolio inflows, after the U.S. Federal Reserve kicked off its interest rate cutting cycle earlier this week.

The US Dollar experienced a decline on Thursday following the Federal Reserve's decision to cut interest rates by 50 basis points and adjust its monetary policy forecast. This led to notable gains for the British pound,

The Federal Reserve's 50 bp rate cut has made for a volatile 15 hours or so in the foreign exchange market. Click to read.

The Indian rupee ended unchanged on Monday while dollar-rupee forward premiums rose on heightened chances of an outsized 50-basis-point rate cut by the U.S. Federal Reserve this week.

For the first time in 16 years, the federal reserved slashed interest rates by half a percentage point and this means relief for millions of Americans.

Before the US Federal Reserve announced its interest rate decision on September 18, analysts were majorly expecting a smaller cut of 0.25%. The decision comes amid growing concerns about economic conditions,

Investor expectations had largely shifted towards a dovish outcome in the days leading up to the Fed's move on Wednesday, with money markets pricing in around a 65% chance of a 50 basis point (bp) cut.

The Indian Rupee 's recovery on Thursday will have to contend with a broadly higher US dollar despite the Federal Reserve delivering a 50-basis-point rate cut. The 1-month Dollar / Rupee non-deliverable forward (NDF) declined to 83.