Extending its rising streak for the second day, the rupee appreciated by 6 paise against the US dollar to 68.54 in early trade on increased selling of the American currency by exporters and banks amid higher domestic equity market.
Forex dealers said besides sustained selling of the greenback, a strong domestic equity markets boosted the upmove.
However, the dollar’s strength against some currencies overseas after the US job data reinforced investors’ expectations that the Federal Reserve will gradually raise interest rates this year, capped the rupee’s gains.
On Friday, the rupee had ended strong by 10 paise at 68.60 against the US dollar in line with a stellar rally in domestic equities despite the ongoing global trade war jitters.
Meanwhile, the benchmark BSE Sensex rose 222.03 points, or 0.59 per cent, to hit its all-time high of 37,778.19 and NSE Nifty too scaled a new peak of 11,400 in early trade.