MUMBAI: The Indian rupee saw its biggest single-day gain in more than two months on Thursday, tracking strength in most other Asian peers and shares, while bond yields inched lower after comments from US Federal Reserve Chair Jerome Powell.

Powell sounded suitably hawkish on curbing inflation in his news conference, but also dropped guidance on the size of the next rate hike and noted that “at some point” it would be appropriate to slow down. India’s partially convertible rupee ended trading at 79.7550 compared to its close of 79.8975. It gained 0.2% on the day, its biggest daily rise since May 20.

India’s benchmark 10-year bond yield ended at 7.33%, down 1 basis point on the day. US Treasury yields edged lower as bonds rallied after the Fed raised rates by 75 bps, in line with market expectations.

The US dollar slumped to a three-week low versus the Japanese yen and struggled against its other major rivals on Thursday as markets ramped up bets on a softening in the pace of rate hikes.