Mumbai: The rupee surged 27 paise to settle at 84.30 against the US dollar on Monday, supported by a sharp decline in crude oil prices and a positive trend in domestic equities.
Robust equity inflows — totalling Rs 2,769.81 crore — reflect continued foreign investor interest in Indian assets, forex traders said, adding while capital inflows offer support, global uncertainties could cap gains.
At the interbank foreign exchange, the domestic unit opened at 84.45 and moved between the intra-day high of 84.10 and the low of 84.47 against the greenback.
The unit ended the session at 84.30, registering a gain of 27 paise over its previous closing level.
On Friday, the rupee hit a seven-month high and rose past the 84 per dollar level but pared all gains to settle 3 paise lower at 84.57 against the greenback.
Meanwhile, the dollar index, was trading lower by 0.38 per cent at 99.64.
Forex traders said the prospect of higher supplies and weakening demand weighed heavily on crude oil prices which were already facing steep losses so far in this calendar year.
Meanwhile, India’s forex reserves increased $1.983 billion to $688.129 billion during the week ended April 25, the RBI said on Friday. This is the eighth consecutive week of a rise in the kitty, which had jumped $8.31 billion to $686.145 in the previous reporting week.