Mumbai: The rupee rose in early trade on Monday, on expectations local stocks will track gains in Asian markets, encouraging fresh buying by foreign funds, traders said.
At 9:05 am, the partially convertible rupee traded at 39.995/40.005 per dollar, about 0.1% higher from the previous close of 40.05/06. It fell to a five-month low of 40.25 per dollar last week.
Asian financial shares rallied on Monday, pushing up stocks and denting bonds across the region, with Tokyo’s Nikkei up more than 2%, after talk of a rescue plan for a US bond insurer eased worries about the outlook of the global credit markets.
Indian shares fell 2.17% on Friday on growing worries among investors about the impact of a recession in the United States.