Rupee, bonds gain on hopes of Federal Reserve slowing rate hikes

At 3:30 pm IST on Thursday, the US dollar index was at 110.09 as against 112.02 at the same time on Tuesday

The rupee and government bonds strengthened on Thursday as weak economic data in the US sparked speculation of the Federal Reserve slowing the pace of its rate increases, dealers said.

The domestic currency settled at 82.50 per US dollar as against 82.73 per dollar on Tuesday. Yield on the 10-year benchmark government bond closed 3 basis points lower at 7.41 per cent. Bond prices and yields move inversely. Bond and currency markets were shut on Wednesday.

Data released late Tuesday showed that US housing prices registered a greater-than-expected decline in August while another report showed deteriorating consumer confidence in the