The rupee strengthened against the U.S. currency for the sixth consecutive session on Monday, closing higher by 12 paise at 95.31 (provisional) following a sharp drop in global crude oil prices and a softer greenback after US President Donald Trump decided to hold off strikes against Iran.
FII inflows and gains in domestic stock markets provided further support to the local unit, forex traders said.
At the interbank foreign exchange, the rupee opened at 95.15 against the greenback and traded in a tight range of 95.11-95.34 during the day. It eventually settled at 95.31 (provisional), up 12 paise from its previous close.
The rupee has rebounded by more than 3 per cent in the six trading sessions to Monday, aided by FII inflows and easing of tensions in the West Asia region. The unit had closed higher by 7 paise at 95.43 against the US dollar on Friday.
US President Donald Trump on Sunday said he decided to hold off on ordering American forces to carry out new strikes against Iran at the urging of Gulf allies Qatar, Saudi Arabia, and the United Arab Emirates.
