Positive sentiments in domestic stock markets lent further support to local unity, according to forex traders.
At the interbank forex market, the rupee opened at 87.94 against the US dollar and traded between 87.74 and 87.94 during the day before settling at 87.93 (provisional), 9 paise higher than the previous close.
On Friday, the rupee closed at 88.02 against the US dollar.
“The Reserve Bank of India allowed the rupee to open below $88… There was no specific development on the India-US trade front, while on the US-China front, talks by government officials gave hope that the US-China trade developments could be resolved amicably,” said Anil Kumar Bhansali, executive director of Finrex.
According to reports from the BSE and NSE, the stock exchanges will hold a special Muhurat trading session for Laxmi Pujan on Tuesday from 1:45 PM to 2:45 PM. However, the forex markets are closed on Tuesdays and Wednesdays. “After two days of holiday from Tuesday, the rupee is expected to fluctuate between 87.70 and 88.30 on Thursday,” Bhansali added.
Meanwhile, the dollar index, which measures the greenback’s strength against a basket of six currencies, rose 0.1 percent to 98.53.
Brent crude, the global oil benchmark, fell 0.36 percent to $61.07 per barrel in futures trading.
In the domestic equity market, Sensex rose 411.18 points to settle at 84,363.37, while Nifty rose 133.30 points to 25,843.15.
Foreign institutional investors (FIIs) bought shares worth Rs 308.98 crore on Friday, according to stock market data.
India’s foreign exchange reserves fell by $2.176 billion to $697.784 billion in the week ended October 10, RBI data released on Friday showed.
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