Lower crude prices too chipped in to support the domestic currency
The rupee surged 12 paise to 72.87 against the US dollar in opening trade on Monday following weakness in the greenback overseas and a positive trend in the domestic equities.
Besides, lower crude prices also supported the domestic unit, dealers said.
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At the interbank foreign exchange, the rupee opened strong at 72.85 against the dollar and lost some ground to touch 72.87 in early deals, a rise of 12 paise over its previous close.
On Friday, the rupee had settled at 72.99 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.03 per cent to 90.11.
Global oil benchmark Brent crude futures fell 0.54 per cent to $71.50 per barrel.
On the domestic equity market front, BSE Sensex was trading 90.43 points or 0.17 per cent higher at 52,190.48, while the broader NSE Nifty advanced 48.40 points or 0.31 per cent to 15,718.65.
Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth ₹1,499.37 crore, as per exchange data.
The Reserve Bank of India (RBI) on Friday decided to leave the benchmark interest rate unchanged at 4 per cent but maintained an accommodative stance amid the second Covid-19 wave.
India reported 1,00,636 fresh Covid-19 cases, the lowest in 61 days, taking the infection tally to 2,89,09,975, while the number of active cases dropped to 14,01,609, according to the Union Health Ministry’s data updated on Monday.