The Indian rupee strengthened by 9 paise, reaching 87.28 against the US dollar in early trade on Monday, supported by a retreat in the US dollar index and signs of recovery in domestic equity markets.
Forex traders noted that foreign capital outflows may ease, following strong macroeconomic data released on Friday. The latest figures showed India's economy grew by 6.2% in the October-December quarter, bouncing back from a seven-quarter low.
However, ongoing volatility due to US tariffs and rising crude oil prices kept the domestic currency's gains in check. Despite these pressures, the rupee showed resilience, reflecting optimism in India's economic outlook.