The rupee gained 36 paise to end at 72.31 against the US dollar as global crude oil prices hovered near one-year lows, easing concerns over expanding current account deficit and inflation.
Euro hovered below $1.13 as Italy re-submitted its draft budget for next year to the European Commission and traders prepared for economic growth numbers due out later.
Euro and sterling climbed higher as investor confidence rose on news Britain had struck a draft divorce deal with the European Union after more than a year of talks.
Rupee appreciated 67 paise to 72 against the US dollar at the interbank foreign exchange after crude prices fell to a one-year low in the global market, easing concerns over expanding current account deficit and inflation.
The dollar traded slightly below a 16-month high versus a basket of peers, benefiting from save-haven flows sparked by political uncertainties in Europe and fears of a global economic slowdown.
Rupee dropped by 39 paise to settle at 72.89 against the US currency as oil prices rebounded after Saudi Arabia announced plans to cut production and the dollar strengthened in global markets.
Rupee weakened further and dipped by 54 paise to 73.04 against the US dollar , owing to increased demand for the American currency from importers amid increasing global crude oil prices.
Dollar built on last week’s gains and rose toward a 16-month high as traders expect the U.S. Federal Reserve to keep tightening monetary policy, but sterling remained under heavy pressure amid uncertainty over a Brexit deal.
Rupee weakened by 26 paise to 72.76 against the US dollar, owing to increased demand for the American currency from importers amid increasing global crude oil prices.