The rupee rose by 3 paise to settle at 72.94 (provisional) against the US dollar on Monday, extending its gains for the fifth straight session despite heavy selling in the domestic equity market.
At the interbank forex market, the rupee opened at 72.95 against the American currency, and hit an intraday high of 72.89 and a low of 72.96 in day trade.
It finally finished at 72.94, higher by 3 paise over its last close. On Friday, the domestic currency had settled at 72.97 against the American currency.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.10 per cent to 90.32.
In terms of the global cues, the Federal Reserve’s policy decision this week is not expected to be tame. In addition, markets will be watching the Fed’s guidance on rates and any outlook on its bond buying plan, analysts say.
Another key factor to watch out for the rupee is the Union Budget.
The domestic currency is likely to strengthen 1.3 per cent and average 73.5 against the US dollar in the financial year 2022-23 compared with an average level of 74.4 in the financial year 2021-22.
On the domestic equity market front, the BSE Sensex ended 530.95 points or 1.09 per cent lower at 48,347.59, while the broader NSE Nifty declined 133 points or 0.93 per cent to 14,238.90.
Foreign institutional investors (FIIs) were net sellers in the capital market as they offloaded shares worth ₹635.69 crore on a net basis on Friday, according to exchange data.
Brent crude futures, the global oil benchmark, rose 0.65 per cent to $55.77 per barrel.