The rupee on Monday opened 29 paise down at 69.87 against dollar on account of some buying in American currency by importers and banks amid some recovery in crude oil prices.

US and Brent crude oil futures jumped after the United States and China came to an agreement on Saturday on trade issues that would put off new tariffs. Brent crude was up over 4 per cent in the international markets, while WTI crude was trading over 5 per cent higher at 53.62 per barrel.

The local currency strengthened by 27 paise to close at a four-month high of 69.58 against the US currency on Friday.

Foreign investors pumped Rs 12,260 crore into the domestic capital markets last month, making it the highest inflow in 10 months due to falling crude oil prices and sharp rupee appreciation.

The inflow comes following a net withdrawal of close to Rs 60,000 crore from the capital markets (equity and debt together) in the preceding two months (September and October).

Prior to that, FPIs had invested Rs 7,300 crore during July and August.

On the domestic front, market participants will be keeping an eye on the RBI policy meeting, where the central bank is expected to hold rates unchanged. On Friday, data showed India’s economy grew 7.1 per cent in Q2 compared to growth of 8.2 per cent in the previous quarter.

Motilal Oswal Financial Services in a report said, “Today, USDINR pair is expected to quote in the range of 69.70 and 70.30.”