Indian rupee ended 32 paise lower at 74.43 per dollar, amid volatility seen in the domestic equity market.
It opened weak by 31 paise at 74.42 per dollar against Thursday's close of 74.11 and traded in the range of 74.27-74.45.
Indian currency market was shut on October 30 on account of Id-E-Milad.
At 14:27 IST, the Sensex was up 262.06 points or 0.66% at 39876.13, and the Nifty was up 59.10 points or 0.51% at 11701.50.
"Rupee ended lower near 74.05 on broad sell-off in capital markets globally, giving some strength to the US Dollar Index. Weak stock strong dollar along with month-end oil importers demand supported USDINR. 74.55-74.65 can be on cards in coming sessions," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.
The U.S. dollar held steady on Monday as investors readied for this week’s U.S. presidential election, while a surge in global coronavirus cases continued to weigh on sentiment.
Also Read - Rupee likely to trade in 73.80-74.65 range per US dollar, deploy Bull Put Spread next week
Oil prices slumped more than 4% on Monday to the lowest levels since May on worries a swathe of coronavirus lockdowns across Europe will weaken fuel demand, while traders braced for turbulence during the U.S. Presidential election week.
"The continuation of the pandemic in absence of a vaccine is creating havoc and is playing out in the fx market. The fear that economic conditions are going to worsen before they get better, is keeping the dollar strong against EM currencies," said Rahul Gupta, Head of Research- Currency, Emkay Global Financial Services.
"Adding to this mood is the uncertainty of the US presidential election outcome. So, next week the chances of USDINR trading above 74 are higher and expect the spot pair to trade within 73.50-74.50," he added.
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