Indian rupee slipped in the early trade on Monday. It opened 23 paise at 73.47 per dollar against previous close of 73.24, amid buying seen in the domestic equity market.
At 10:02 IST, the Sensex was up 429.01 points or 0.88% at 49,211.52, and the Nifty was up 118.90 points or 0.83% at 14,466.20.
"USD-INR to open around 73.43 and stay in the range of 73.30/73.60 as dollar index moves up. Sell the upticks near to 73.60 for exporters while buy the downside towards 73.30 for importers," said Anil Kumar Bhansali, Head- Treasury, Finrex Treasury Advisors.
Gold prices touched a near six-week low on Monday, extending losses from the previous session, as a stronger dollar and higher U.S. Treasury yields pressured the non-yielding bullion.
Oil prices fell on Monday on renewed concerns about global fuel demand amid strict coronavirus lockdowns in Europe and new movement restrictions in China, the world's second-largest oil user, after a jump in cases there.
"We are witnessing a reversal in the dollar index, while political stability in the US and the probability of a further fiscal stimulus package has pushed the long-term US yields higher. Moreover, there is a possibility that the Fed may reduce its bond buying plan towards the end of this year, which could further push US yields higher and consequently hurt the rupee," said Sugandha Sachdeva VP-Metals, Energy & Currency Research, Religare Broking.
"Back home, with RBI mopping up dollar inflows, the local currency can test 73.80 to 74 levels in the coming sessions. We expect the rupee to trade in a broad range of 73 to 74.20 levels for the rest of this month," she added.