Mumbai: The rupee recovered from its all-time low level and appreciated by 5 paise to 83.65 against the US dollar in early trade on Monday, as the American currency retreated from its elevated level.

Forex traders said foreign fund inflows and possible intervention by the Reserve Bank of India (RBI) supported the rupee at lower levels and restricted the downfall.

At the interbank foreign exchange market, the local unit opened at 83.66, and touched an early high of 83.65, registering a gain of 5 paise from its previous close.

On Friday, the rupee depreciated 7 paise to settle at its all-time low of 83.70 against the US dollar.

“A weakening dollar — prompted by shifts in the macroeconomic landscape and emerging cracks in US economic data — caused the dollar index to dip to 104. This scenario saw emerging market currencies rising against the dollar,” CR Forex Advisors MD Amit Pabari said.

However, despite these rupee-supporting factors, the Indian currency hasn’t appreciated significantly, Pabari added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, was at 104.29, lower by 0.10 per cent.

Brent crude futures, the global oil benchmark, rose 0.69 per cent to USD 83.20 per barrel.

On the macroeconomic front, India’s forex reserves jumped by USD 9.699 billion to an all-time high of USD 666.854 billion for the week ended July 12, the RBI said on Friday.