The Indian rupee reversed earlier losses to once again appreciate against the U.S. dollar in a volatile session.
The local currency opened at 81.17, appreciating 0.11%, or 9 paise. It closed at 81.26 on Monday. Shortly thereafter, it depreciated by 0.23% to 81.44.
Intraday, the rupee reversed losses to appreciate as much as 0.28%, or 22 paise, to 81.03. It closed 0.19% higher at 81.10.
The rupee had hit a record low of 83.29 on Oct. 20.
Forex traders said sustained foreign fund inflows also supported the local unit.
Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 1,089.41 crore, according to exchange data.
On the domestic macroeconomic front, indicating an easing of the price situation, retail inflation moderated to 6.7% in October while wholesale price index-based inflation fell to a 19-month low, mainly on account of subdued rates of food items.
(With inputs from PTI)
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