Rupee climbs 25 paise to 86.80 vs US dollar

The rupee appreciated 25 paise to 86.80 against the US dollar in early trade on Monday, supported by a positive start in domestic equities and strength in Asian currencies At the interbank foreign exchange, the local currency opened at 86.90 before gaining further to 86.80, up from its previous close of 87.05.

According to forex traders, the rupee gained as investors expect the US Federal Reserve to take a softer stance on interest rates, putting pressure on the dollar. However, they also pointed out that global market sentiment and changing crude oil prices will continue to play a big role in deciding where the rupee goes next.

On Thursday, the rupee had surged 17 paise to settle at 87.05 against the US dollar. Markets were closed on Friday due to the Holi festival.

Also Read: Rupee jumps 19 paise to 87.03 vs US dollar

"The USD/INR pair is expected to trade in the 86.80-87.40 range in the near to medium term. A breakout beyond this level could lead to a move of 30-50 paise in the same direction, increasing market volatility," said Amit Pabari, MD, CR Forex Advisors.

Market participants are also keeping a close watch on the Reserve Bank of India's stance, as any potential intervention could impact the currency's movement.

Meanwhile, the US dollar index, which measures the greenback's strength against a basket of six currencies, was down 0.01 per cent at 103.70. Brent crude, the global benchmark, was trading 0.71 per cent higher at 71.08 US dollar per barrel in futures trade.

Indian equities open mixed, Sensex slips, Nifty gains

Indian stock markets opened on a mixed note on Monday, even as Asian markets traded higher. The 30-share BSE Sensex dipped 11.83 points, or 0.02 per cent, to 73,817.08 at the open, while the Nifty50 edged up 62.3 points, or 0.28 per cent, to 22,459.5.

Also Read: Indices open mixed, Sensex down 12 pts, Nifty at 22,460

Asian markets gain on China stimulus

Most Asian markets saw gains in Monday's session, buoyed by fresh stimulus measures from China, despite lingering concerns over a potential global trade war. The MSCI Asia ex-Japan index was last up 0.97 per cent.