In early trade on Monday, the rupee rose 33 paise to 81.77 against the US dollar, underpinned by continued foreign fund inflows and positive momentum in domestic stocks as benchmark indexes reached all-time highs.
The local unit opened at 82.01 versus the dollar on the interbank foreign exchange and later jumped to 81.77, a 33-paise gain over its previous closing.
The rupee finished at 82.10 versus the US dollar on Friday.
According to forex traders, the currency is trading on a high note due to strong foreign fund inflows and positive macroeconomic indications.
The rupee is expected to trade in the region of 81.90 to 82.20 during the day, according to Anil Kumar Bhansali, Head of Treasury and Executive Director at Finrex Treasury Advisors LLP.
“… Rupee looks to remain in the above range as Macro data from India comes out much better than most other countries. The GST figures, the core sector growth were all better than expected,” Bhansali said.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.05 percent to 102.96.
The global oil benchmark, Brent crude futures, was trading 0.07 percent higher at USD 75.46 per barrel.
The 30-share BSE Sensex climbed 385.17 points, or 0.60 percent, to an all-time high of 65,103.73 in the domestic equities market. The NSE Nifty climbed 112.35 points, or 0.59 percent, to a new career high of 19,301.40.
According to exchange data, Foreign Institutional Investors (FIIs) were net purchasers in the capital market on Friday, purchasing shares worth Rs 6,397.13 crore.
Source:FE