The Indian rupee rallied to a six-week high on Thursday, reaching an intraday peak of 94.2175 per U.S. dollar, its strongest since May 7, before settling at 94.2925, up 0.25% on the day. The gains were driven by exporter flows and offshore dollar selling, which reversed early losses that had pushed the rupee to 94.70 after a hawkish Federal Reserve outcome. Nine of 18 Fed policymakers pencilled in a rate hike this year, far more than anticipated, with one projecting three 25-basis-point hikes over the next six months and five projecting two. Markets are now pricing in 32 basis points of rate hikes this year and a cumulative 42 basis points by this time next year, according to ING. A further decline in oil prices also supported the rupee, with Brent crude futures falling 2.5% in Asian trade to $77.58 per barrel after the U.S. and Iranian presidents signed an interim peace deal.