Indian rupee opened on a flat note at 75.59 against the US dollar on Monday, tracking its Asian peers as investors await the outcome of a US Federal Reserve meeting this week.
Forex traders said the rupee movement was largely in tandem with other Asian currencies. This was despite a positive opening in domestic equities.
The local currency opened at 75.59 against the US dollar, down 1 paisa over its previous close of 75.58 against the greenback on Friday.
Asian currencies were flat this morning, Reliance Securities said in a research note, adding that strong flows into the domestic equity markets could limit a depreciation bias.
The report further added that 'the US economy is slowly recovering from the slowdown due to COVID-19. The question on investors' minds will be whether the Fed sends an optimistic message to the markets or will it still be negative'.
On the equities front, the 30-share BSE benchmark Sensex was quoting 534.69 points higher at 34,821.93 and broader Nifty rose 157.85 points to 10,300.00.
Foreign institutional investors were net buyers in the capital market, as they bought shares worth Rs 97.61 crore on Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, rose 1.75 per cent to USD 43.04 per barrel.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 96.89.
Meanwhile, the number of cases around the world linked to the disease has crossed 70.15 lakh and the death toll has topped 4.02 lakh.
In India, the death toll due to COVID-19 rose to 7,135 and the number of infections rose to 2,56,611, according to the health ministry.
(Edited with PTI inputs)