The Indian rupee rose to its strongest level in over six weeks on Thursday after the Federal Reserve kicked off policy easing with a 50-basis-point rate cut, but traders expect importer dollar bids to limit the currency's immediate gains.

The stock market, Indian rupee, and gold price are all likely to do better following the much-anticipated rate cut by the Fed in the US. Here’s why optimism may be warranted

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.

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.