The domestic currency closed at 72.50 against the US dollar, a level is last seen on 28 February 2020
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12% to 90.26
Mumbai: The Indian rupee strengthened on Monday to close at a one-year high against the US dollar tracking domestic equities.
The domestic currency closed at 72.50 against the US dollar, a level is last seen on 28 February 2020, up 0.21% from its previous close of 72.65 on Thursday, as the currency market was shut on Friday on account of Chhatrapati Shivaji Maharaj Jayanti.
Jateen Trivedi, Senior Research Analyst at LKP Securities said "Rupee traded strong above 72.50 first time after one year on 25 feb 20 when once it breached below 72.50 mark on closing and had weak trend till 77.
"On the back of the Dollar index, weakness rupee witnessed a positive trend but took resistance near 72.30. Going ahead 72.25-72.65 will be the range to look for" he added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.12% to 90.26.
The rupee started on a strong note against the US dollar tracking the weakness of the greenback. Additionally, foreign portfolio investment (FPI) flows into the markets could also lend support, Reliance Securities said in a research note.
"The important macroeconomic data releases this week are the third quarter GDP data and the fiscal deficit data which could move the markets," the note added.
On the domestic equity market front, the 30-share BSE benchmark Sensex closed 1145.44 points lower at 49,744.32, and the broader index, Nifty declined 306.05 points to 14,675.70.
Foreign institutional investors have net bought $35.49 billion in equity and are net sellers of $4.47 billion in debt markets respectively since the beginning of fiscal year, while domestic institutional investors sold ₹1.39 trillion in stocks, according to data on the exchanges.
Brent crude futures, the global oil benchmark, advanced 0.97% to $63.92 per barrel.