Rupee strengthened 21 paise to trade at 68.36 against the US dollar in morning session at the interbank forex market today.
Slide in global crude oil prices along with expectations of healthy quarterly results pushed the key indices of the Indian equity market higher during the morning trade session.
BSE Sensex dropped by around 218 points or 0.60 per cent due to sell-off in banking, pharma, and metal stocks as investors turned cautious after wholesale inflation surged to a four-year high.
Indian equity indices traded in the negative territory on Monday afternoon tracking weak Asian markets.
Indian equity indices was trading flat-to-negative on Monday soon after opening.
Supportive global cues and a healthy start to the earnings season lifted the key Indian equity indices over 2 per cent in the week ended Friday, with the BSE Sensex setting fresh benchmarks and the NSE Nifty50 closing over the 11,000-mark.
Shedding all the gains made early in the day, the key Indian equity indices ended flat weighed down by heavy selling in banking, capital goods and healthcare stocks.
Rupee pared its initial gains, while trading 15 paise higher at 68.42 against the American currency in late morning deals on continued bouts of dollar selling from banks and exporters.
BSE Sensex hit a fresh record high of 36,740 points in the morning session, but eventually trimmed major gains to trade marginally higher during the afternoon session.
Rising for the third day, the rupee appreciated by 23 paise to trade at a three-week high of 68.32 against the US dollar today amid easing food prices, and continued selling of the greenback by banks and exporters.