The Indian rupee appreciated by 20 paise to 72.04 against the United States (US) dollar in early trade on Monday tracking positive opening in domestic equities and weakening of the American dollar in the overseas market.
At the interbank foreign exchange the rupee opened at 72.09, then gained further ground and touched a high of 72.04 against the US dollar, registering a rise of 20 paise over its previous close.
The domestic currency, however, could not hold on to the gains and was trading at 72.18 against the American unit at 0957 hrs.
On Friday, rupee had settled at 72.24 against the greenback.
Meanwhile, investor sentiment remained fragile amid concerns over the impact of coronavirus outbreak on the global economy, forex traders said.
The number of deaths globally in the new coronavirus outbreak passed 3,000 on Monday, as China reported 42 more deaths.
The dollar index, which gauges the greenback’s strength against the basket of six currencies was trading 0.15 per cent lower at 97.98.
The 10-year government bond yield was at 6.34 per cent in morning trade.