Rupee ends higher at 74.14 per dollar

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Indian rupee erased some early gains but still ended higher at 74.14 per dollar, amid buying seen in the domestic equity market.

It opened higher at 73.94 per dollar against previous close of 74.20 and trade in the range of 73.82-74.17.

The Sensex ended 704.37 points or 1.68% higher at 42,597.43, and the Nifty rose 197.50 points or 1.61% at 12,461.

The dollar hit a 10-week low on Monday as investors heralded Joe Biden’s election as U.S. president by buying trade-exposed currencies on expectations that a calmer White House could boost world commerce and that monetary policy will remain easy.

"Rupee traded weak on Friday on back of dollar index strength and covered short position seen in USDINR. As we go into weekend US Election outcome is still a overhang and the Open Interest (OI) data suggests position is being covered due to volatile swings dollar is witnessing. Range remain between 74-75," said Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities.

Oil prices gained more than 2% on Monday, with Brent futures rising above $40 a barrel, after Joe Biden clinched the US presidency and buoyed risk appetite, offsetting worries about impact on fuel demand from the worsening coronavirus pandemic.

The rupee traded positively and Call writers near 74.50 strike continued to dominate at higher levels. We feel the USD-INR pair should find resistance around these levels, said ICICIdirect.

The dollar-rupee November contract on the NSE was at 74.27 in the last session. The open interest increased 4.1% for the November series contract, it added.