Rupee extends gains by 8 paise to 70.86 against US dollar

The rupee rose 8 paise to settle at 70.86 against the US dollar on Monday as investor sentiment strengthened amid positive global cues and gains in domestic equity market.

This is the fifth straight session of gains for the domestic currency, during which it has appreciated by 106 paise.

At the interbank foreign exchange market, the local unit opened on a strong note at 70.82, and shuttled between a high of 70.75 and a low of 70.93 during the day. It finally closed at 70.86, higher by 8 paise over its previous close.

The rupee had settled at 70.94 against the US dollar on Friday.

"Rupee continued to trend higher against the US dollar following extended gains in domestic equities and on back of de-escalation of geopolitical tension between US and Iran," said Gaurang Somaiyaa, Forex & Bullion Analyst, Motilal Oswal Financial Services.

Somaiyaa further noted that on the domestic front, market participants will be keeping an eye on the inflation number and an uptick could keep gains capped for the currency.