Indian rupee appreciated by 21 paise to 72.90 against the US dollar on Monday's opening trade supported by sustained foreign fund inflows and weakness of the American currency in the overseas market. Positive domestic equities and news on COVID-19 vaccine also improved sentiments.
India's drugs regulator on Sunday approved Oxford COVID-19 vaccine Covishield, manufactured by the Serum Institute, and indigenously developed Covaxin of Bharat Biotech for restricted emergency use in the country, paving the way for a massive inoculation drive.
The domestic unit opened at 72.93 against the US dollar at the interbank forex market, and inched higher to 72.90 against the greenback, rising 21 paise over its previous close.
On Friday, the rupee traded in a narrow range and depreciated by 4 paise to close at 73.11 against the US dollar in the first session 2021.
Meanwhile, the dollar index, fell 0.24 per cent to 89.72 against a basket of six currencies.
Reliance Securities said in its note,"An improving global economic outlook as COVID-19 vaccines are rolled out, rock-bottom US interest rates and ongoing Fed bond purchases have dented the dollar's appeal. Further, most Asian currencies were trading stronger against the greenback this morning and could lend support to the domestic unit."
On the domestic equity market front, Market indices continued to surge to new record highs on Monday in line with positive global equities. Extending gains for the ninth consecutive session, Sensex was trading 250 points higher at 48,129 and Nifty gained by 80 points higher at 14,100. During today's session, Sensex hit a lifetime high of 48,168 and Nifty rose to a new high of 14,107.
Foreign portfolio investors (FPIs) bought shares worth Rs 506.21 crore, while domestic institutional investors (DIIs), were net buyers to the tune of Rs 69.40 crore in the Indian equity market on 1 January, provisional data showed.
Brent crude futures, the global oil benchmark, advanced 1.06 per cent to USD 52.35 per barrel.