The rupee stayed on the upward track for a record seventh straight session and settled 10 paise higher at 83.55 (provisional) against the dollar on Friday, as robust domestic equity markets and retreating crude oil prices boosted investors' sentiment.

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.

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.

Falling crude oil prices provided support to the Indian currency, though it was partially weighed down by foreign fund outflows, according to forex traders. At the interbank foreign exchange market, the rupee opened at 83.

The rupee strengthened by 10 paise to hit its two-month high level of 83.66 against the US dollar on Thursday after the US Federal Reserve cut the benchmark interest rate by 0.50 per cent, boosting investors' sentiment.

Rupee strengthens against dollar on lower oil prices, foreign fund inflows, despite greenback's gains and Fed rate cut.

Forex traders noted that the rupee gained support from lower crude oil prices, positive domestic equity markets, and an inflow of foreign funds. However, they added that the strengthening U.S. dollar limited further gains for the local currency.

At the interbank foreign exchange market, the Indian currency opened at 83.70 and inched up to 83.69 before trading at 83.70 against the greenback, registering a gain of 6 paise from its previous closing level.