Mumbai: The rupee appreciated 5 paise to settle at 88.74 against the US dollar on Monday, mainly supported by a firm trend in domestic equities amid a rise in global crude oil prices.
However, a strengthening greenback in the overseas market and unabated foreign capital outflows pressurised the domestic unit and restricted the gains, forex traders said.
At the interbank foreign exchange, the rupee opened at 88.75 against the US dollar, and moved in a tight range of 88.83 and 88.74 before settling at 88.74, a rise of 5 paise over its previous close.
On Friday, the rupee depreciated eight paise to close at 88.79 against the US dollar.
On September 30, the rupee had fallen to an all-time low of 88.80 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading at 98.43, higher by 0.73 per cent.
Meanwhile, India’s foreign exchange reserves decreased by $2.334 billion to $700.236 billion during the week ended September 26, according to the RBI data on Friday.
In the previous reporting week, the kitty had declined by $396 million to $702.57 billion.