The rupee opened 8 paise higher at 69.69 against the US dollar on the first day of New Year due to some selling in American currency by banks and exporters.

The local currency on Monday signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar but registered a 9.23 per cent dip during the year.

According to Motilal Oswal Financial Services, weakness in the dollar against its major crosses has been one of the major reasons that led to the appreciation in the rupee.

Forex traders, however, said fundamentals are supportive for the rupee over the next 6-12 months amid supportive growth momentum, robust forex reserves, according to PTI.

“Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion and dollar stabilisation is likely to be positive for the Indian rupee,” global financial services major Standard Chartered said in a research note.

On the domestic front, data showed India’s fiscal deficit stood at 114.8 per cent per cent of the budgeted target for the current fiscal year. The fiscal deficit for the corresponding period last financial year stood at 112 per cent.

US equities on Monday settled the session on a positive note and volatility for major currencies is expected to remain low today as most global equities remain shut on account of New Year holiday.

“Today, USDINR pair is expected to quote in the range of 69.40 and 70.05," brokerage Motilal Oswal Financial Services said.