The Indian currency has been on a recovery path since September 11 when it had settled at 83.99 against the American currency, a tad higher than the lowest level of 84.09 recorded on August 5.

The Indian rupee strengthened for a seventh straight session, closing at 83.55 against the US dollar. Robust domestic equities and falling oil prices boosted sentiment, while a weaker dollar against Asian peers supported the gain.

At the interbank foreign exchange market, the Indian currency opened at 83.63 and hit the intra-day high of 83.48 against the greenback

Analysts said the dollar index retreated after the US Federal Reserve reduced the benchmark interest rate by 0.50 per cent, prompting investors to look towards emerging market currencies.