The rupee rose for the second straight session on Monday to close 7 paise higher at 73.22 (provisional) against the U.S. dollar on the back of positive domestic equities and weak American currency.
At the interbank forex market, the rupee opened at 73.24 and hit an intra-day high of 73.16 and a low of 73.26.
The local unit finally settled at 73.22, registering a gain of 7 paise over its previous close. On Friday, the rupee had closed at 73.29 against the U.S. dollar.
The domestic unit has appreciated 20 paise in the last two trading sessions.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09% to 90.23.
On the domestic equity market front, the BSE Sensex ended 848.18 points or 1.74% higher at 49,580.73, while the broader NSE Nifty advanced 245.35 points or 1.67% to 14,923.15.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out ₹2,607.85 crore on Friday, as per provisional data.
Brent crude futures, the global oil benchmark, rose 0.19% to $68.84 per barrel. Meanwhile, India's COVID-19 tally mounted to 2,49,65,463 on Monday with 2,81,386 fresh COVID-19 cases, the lowest in 27 days, while the death toll climbed to 2,74,390 with 4,106 fatalities, according to Union Health Ministry data.
