The rupee continued its upward trend for the second straight session and appreciated by 9 paise to 82.93 against the US dollar in early trade on Monday, tracking positive cues from domestic equity markets and a weak American currency against major overseas rivals.
On Friday, the rupee closed at 83.02 against the US dollar.
Gaurang Somaiya, forex and bullion analyst, Motilal Oswal Financial Services, said this week the domestic inflation number will be important to watch and could trigger volatility for the currency.
"Today, volatility for major crosses including the rupee could remain low as no major economic data is expected to release. We expect the USDINR (Spot) to trade sideways with a positive bias and quote in the range of 82.80 and 83.40," Somaiya added.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.35 per cent to 104.72.
Oil prices fell on Monday as economic concerns in China continued to impact fuel demand. However, Brent continued to stay above the $90 per barrel mark.
Brent crude futures for November lost 49 cents at $90.16 per barrel and US West Texas Intermediate crude fell to $86.77 per barrel with a loss of 74 cents.
The markets on Monday morning opened higher with Sensex at 66,776.97, up by 178.06 points and Nifty was at 19,883.90 with a gain of 63.95 points. HCLTech, Tata Motors, NTPC, Wipro and Power Grid were the top gainers in the morning session, whereas Infosys, Bharti Airtel and IndusInd Bank were among the losers.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Friday as they offloaded shares worth Rs 224.22 crore, according to exchange data.
With inputs from Agencies.