Mumbai, February 23 The rupee rose by 21 paise to 90.73 against the US dollar in early trading on Monday, supported by a sharp fall in global crude oil prices and a weaker US dollar amid renewed uncertainty over US President Donald Trump raising tariffs to 15 per cent.
Brent crude, the global oil benchmark, was down 1.09 per cent at USD 70.98 per barrel.
A strong opening in domestic equity markets, along with an increase in forex reserves, provided further support to the local currency, according to forex traders.
At the interbank foreign exchange, the rupee opened at 90.76 against the US dollar and rose further to 90.73, up 21 paise from its previous close.
The rupee fell 26 paise to settle at 90.94 against the US dollar on Friday.
"The rupee opened stronger after the US Supreme Court's decision on tariffs caused the dollar index to fall. Most Asian currencies have gained from their Friday close," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP.
He, however, said that the dollar-buying sentiment continues in the market and could weigh on the rupee. "The rupee could be sold off as the day passes with dollar-buying sentiment continuing in the market," he said.
Meanwhile, the dollar index, which gauges the strength of the US dollar against a basket of six currencies, was trading lower by 0.33 per cent at 97.47.
On the domestic equity market front, the Sensex surged 621.78 points to 83,436.49 in early trading while the Nifty was up 180.05 points to 25,751.30.
On Friday, foreign institutional investors offloaded equities worth Rs 934.61 crore, according to exchange data.
India's forex reserves jumped USD 8.663 billion to hit a new all-time high of USD 725.727 billion in the week ended February 13, the RBI said on Friday.
