The rupee appreciated by 31 paise to 69.39 against the U.S. dollar in opening trade on Monday, driven by easing crude prices and higher opening in domestic equities.
Forex dealers said, the local currency gained strength ahead of the Reserve Bank of India’s monetary policy meet. The Monetary Policy Committee (MPC), which decides on key interest rates, will hold a meeting on June 3, 4 and 6.
The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close.
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The rupee on Friday had settled at 69.70 to the U.S. dollar. Meanwhile, the 10-year government bond yield was at 6.95% on Monday, against previous close of 7.03% on Friday.
Forex traders said foreign fund inflows also supported the domestic currency. Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in ₹676.15 crore on a net basis Friday, provisional exchange data showed.
Brent crude futures, the global oil benchmark, eased 1.13% to $61.29 per barrel.
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Meanwhile, the benchmark BSE Sensex was trading higher by 187.60 points, or 0.47% to quote at 39,901.80 while the NSE Nifty was trading at 11,963.10, higher by 40.30 points, or 0.34%.