Rupee inches 1 paisa higher to close at 75.77 against US dollar

The rupee on Monday settled for the day on a flat note with a marginal gain of 1 paisa at 75.77 (provisional) against the US dollar, tracking a muted trend in domestic equities.

At the interbank foreign exchange market, the local currency opened on a strong note at 75.64 and witnessed an intra-day high of 75.63 and a low of 75.77 against the US dollar in a highly volatile trading session.

The local unit finally settled at 75.77 a dollar, up 1 paisa over its previous close.

On Friday, the rupee had dropped by 18 paise to an over 16-month low of 75.78 against the US dollar.

The appreciation bias in the rupee was curtailed, amid surging crude prices in the international market, firm American currency and unabated foreign capital outflows.

The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.32 per cent up at 96.40.

Meanwhile, Brent crude futures, the global oil benchmark, advanced 0.31 per cent to USD 75.38 per barrel.

On the domestic equity market front, the BSE Sensex ended 503.25 points or 0.86 per cent lower at 58,283.42, while the broader NSE Nifty declined 143.05 points or 0.82 per cent to 17,368.25.

Foreign institutional investors remained net sellers in the capital market on Friday, as they offloaded shares worth Rs 1,092.40 crore, as per exchange data.

On the macro-economic front, India's industrial production growth remained subdued for the second straight month and expanded by 3.2 per cent in October, mainly due to the waning low base effect while mining, power and manufacturing sectors performed well.