The rupee gained 38 paise to close at a one—month high of 61.52 against the dollar on Monday after local stocks surged and exporters and banks sold dollars.
The rupee was also supported by weakness in the dollar overseas after disappointing US jobs data announced last weekend eased concerns about the Federal Reserve’s tapering of the stimulus programme, a forex dealer said.
At the interbank foreign exchange market, the rupee opened strong at 61.52 a dollar from Friday’s close of 61.90.
It moved in a range of 61.41 to 61.64 before settling at the opening level of 61.52, a rise of 38 paise or 0.61 per cent.
The rupee is at the highest level since closing at 61.25 on December 11, 2013.
“It was a strong session for the Indian rupee, thanks to the weakness in the US dollar. Friday’s poor non-farm payroll data led to losses in the US dollar...benchmark indices which closed on a strong positive note also helped rupee to post gains,” said Abhishek Goenka, CEO of India Forex Advisors