The rupee pared its initial losses to settle higher by 14 paise at 73.95 (provisional) against the US dollar on Monday following losses in the American currency in the global markets.
At the interbank foreign exchange market, the domestic unit opened lower at 74.25 tracking a sell-off in the domestic equities. The rupee touched a low of 74.33 and a high of 73.90 during the day.
The domestic unit finally ended 14 paise higher at 73.95 against the US dollar. On Friday, the rupee had closed at 74.09 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell by 0.14 per cent to 91.15.
On the domestic equity market front, the BSE Sensex rebounded from its early lows and settled 63.84 points or 0.13 per cent down at 48,718.52, while the NSE Nifty closed 3.05 points or 0.02 per cent higher at 14,634.15.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they pulled out Rs 3,465.07 crore on Friday, according to exchange data.
Brent crude futures, the global oil benchmark, declined 0.63 per cent to USD 66.34 per barrel.
With PTI inputs
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