Indian currency also affected by the rise in stock market, rupee became strong against dollar in early trade

Amid the record rise in the stock market and the ongoing inflow of FPI, the rupee has also strengthened against the dollar today. The rupee rose 3 paise to 83.37 against the US dollar in early trade.

At the Interbank Foreign Exchange, the rupee opened at 83.39 against the dollar and reached 83.37, up 3 paise from its previous close. On Friday, the last trading day of last week, the rupee fell by 4 paise and closed at 83.40 against the dollar.

Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, told PTI, "Investors will keep a close eye on the monetary policy decisions of the US Federal Reserve and other central banks to be announced this week. The (US Fed) Governor's comments will be important to watch and gauge the view of the major cross. Volatility may remain low today as No major economic data is expected to be released from the US. We expect USD-INR (Spot) to trade sideways and remain in the range of 83.20 and 83.50."

The dollar index, which compares the strength of the dollar against six other currencies, was trading 0.03 per cent higher at 103.66 today. Apart from this, global oil benchmark Brent crude futures also increased by 0.59 per cent to reach US $ 76.29 per barrel.

Last Friday, RBI announced the decision to keep the repo rate stable. This was the fifth consecutive time that the repo rate has been kept constant at 6.5 per cent. During this time, RBI had also said that India's foreign exchange reserves had crossed the mark of $ 604 billion.

According to exchange data, foreign institutional investors (FIIs) bought shares worth Rs 3,632.30 crore from the stock market on Friday.

As soon as the market opened on Monday, Sensex touched the mark of 71000 and Nifty created a new all-time high record by touching the mark of 21000.