The rupee strengthened by 13 paise to close at 71.18 against the US dollar on Monday on easing crude oil prices, even as the greenback strengthened vis-a-vis other major currencies.
This is the fifth successive session of gain for the domestic currency, during which it has climbed 62 paise.
At the Interbank Foreign Exchange (forex) Monday, the rupee opened on a firm note at 71.24. It gained further to hit a high of 71.09 and finally settled for the day at 71.18, up 13 paise over its last close.
On Friday, the rupee had ended 14 paise higher at 71.31 against the US dollar.
Easing crude price was a major factor that boosted the rupee sentiments. Brent crude, the global oil benchmark, was trading at $61.94 per barrel, down by 0.26 per cent.
“The Indian rupee appreciated for fifth straight day. INR is the best performing emerging market currency over last one week,” said Sunil Sharma, Chief Investment Officer, Sanctum Wealth Management.
Forex traders attributed the US dollar movement to renewed concerns over ongoing US-China trade talks and global economic recovery.
“The dollar index attracted the safe haven investment on mounting concerns over US China trade talks and global economic recovery. The dollar edged upwards to a new high for 2019, as the slowdown in the Euro zone showed signs of raising more political instability,” said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.10 per cent to 96.73.
Meanwhile, foreign portfolio investors (FPIs) bought shares worth a net Rs 843.73 crore, and domestic institutional investors (DIIs) sold shares to the tune of Rs 960.04 crore Friday, provisional data showed.