However, concerns over the coronavirus and rising crude oil prices restricted the rupee’s gains.
The rupee opened at 74.95 per dollar in the interbank foreign exchange market. During trading, it went up to 74.60 in the high and 74.95 in the low. It finally closed higher by 30 paise at 74.70 against the US Dollar. In the previous trading session, it had improved by three paise to close at 75 per dollar.
The rupee has gained 162 paise during the last nine trading sessions.
Dilip Parmar, Research Analyst, HDFC Securities, said, “Rupee outperformed Asian currencies amid improved risk appetite and a weaker dollar index. It remained bullish for the ninth day in a row as state-run banks continued to be sellers on behalf of exporters. The trading volume in the forex market remained weak ahead of the new year.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services, said, “The volatility of the rupee in the last few sessions has been influenced by RBI intervention and weakness in the dollar index. Most of the market participants are out of business due to Christmas and New Year holidays.
Traders said a bullish trend in the Indian equity market and strong Asian currencies led to an improvement in trading sentiment. He said business is now expected to remain in a narrow range ahead of the year-end holidays.
The 30-share Sensex of BSE closed at 57,897.48, up 477.24 points.
Meanwhile, the dollar index, which reflects the trend of the dollar against the six currencies, declined 0.08 per cent to 96.02.
Global benchmark Brent crude futures rose 0.57 per cent to $79.05 per barrel.
According to provisional stock market data, foreign institutional investors were net sellers in the capital market. He sold shares worth Rs 1,038.25 crore on Monday.