The Indian rupee appreciated on Monday, supported by a weakening US dollar and foreign investment inflows related to global equity index rebalancing.
The rupee closed at 85.3825 per dollar, marking a 0.23% increase from the previous trading session's close.
Currency traders indicated that the rupee's early gains were fueled by dollar inflows connected to index rebalancing activities. The overall decline in the dollar's value further contributed to the positive market sentiment surrounding the rupee.
The dollar index experienced a drop below 99, influenced by escalating trade tensions following accusations by former US President Donald Trump that China had violated tariff agreements.