The rupee started the financial year 2022-23 on a bullish note and settled 19 paise higher at 75.55 (provisional) against the United States dollar on Monday, supported by a firm trend in domestic equities.
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At the interbank forex market, the local unit opened at 75.77 against the greenback and witnessed an intra-day high of 75.42 and a low of 75.79.
It finally ended at 75.55, registering a rise of 19 paise over its previous close.
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On Thursday, the last trading session of FY22, the rupee had advanced by 16 paise to close at 75.74.
The local unit, however, closed the 2021-22 fiscal with overall losses of 3.61% or 264 paise against the American currency due to a stronger dollar and surging crude oil prices.
The forex market was closed on Friday for the annual account closing of banks.
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Meanwhile, the dollar index, which measures the greenback's strength against a basket of six currencies, rose 0.12% to 98.75.
Brent crude futures, the global oil benchmark, slipped 1.07% to $103.27 per barrel.
On the domestic equity market front, the BSE Sensex ended 1,335.05 points or 2.25% higher at 60,611.74, while the broader NSE Nifty surged 382.95 points or 2.17% to 18,053.40.
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Foreign institutional investors remained net buyers in the capital market on Friday as they purchased shares worth ₹1,909.78 crore, according to stock exchange data.
On the domestic macroeconomic front, India's current account deficit widened to $23 billion or 2.7% of the GDP in the December quarter, according to the Reserve Bank of India.
The deficit was at $9.9 billion or 1.3% of the GDP in the second quarter of the fiscal, while the same stood at $2.2 billion or 0.3% of the GDP in the year-ago period, the data on Balance of Payments showed.
The Centre's fiscal deficit at the end of February stood at 82.7% of the full-year budget target, mainly on account of higher expenditure, as per the government data released on Thursday.