The rupee appreciated 11 paise to 72.54 against the US dollar in opening trade on Monday supported by sustained foreign fund inflows and weakness of the American currency in the overseas market.
At the interbank forex market, the domestic currency opened at 72.58 against the US dollar and inched higher to 72.54 against the greenback — registering a rise of 11 paise over its previous close.
On Thursday, the rupee had settled at 72.65 against the American currency.
The forex market was shut on Friday on account of Chhatrapati Shivaji Maharaj Jayanti.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.04 per cent to 90.32.
The rupee started on a strong note against the US dollar tracking the weakness of the greenback. Additionally, foreign portfolio investment (FPI) flows into the markets could also lend support, Reliance Securities said in a research note.
“The important macroeconomic data releases this week are the third quarter GDP data and the fiscal deficit data which could move the markets,” the note added.
Traders said investors could await the release of RBI Monetary Policy Committee’s February meeting minutes on Monday for further cues.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 416.83 points lower at 50,472.93, and the broader NSE Nifty declined 100.80 points to 14,880.95.
Foreign institutional investors (FIIs) were net buyers in the capital market as they purchased shares worth Rs 118.75 crore on Friday, according to exchange data.
Brent crude futures, the global oil benchmark, advanced 1.30 per cent to $63.73 per barrel.
The domestic currency is likely to strengthen 1.3 per cent and average 73.5 against the US dollar in the financial year 2022-23 compared with an average level of 74.4 in the financial year 2021-22.