Mumbai: The rupee appreciated 5 paise to 83.44 against the US dollar in early trade on Monday, as the American currency and crude oil prices retreated from their elevated levels.

Forex traders said foreign fund inflows also aided investors’ sentiments and supported the rupee.

At the interbank foreign exchange market, the local unit opened at 83.45 and gained further to 83.44 against the greenback, registering a rise of 5 paise from its previous close.

On Friday, the rupee settled at 83.49 against the US dollar.

According to CR Forex Advisors MD Amit Pabari the Reserve Bank of India (RBI) seems determined to prevent the rupee from depreciating below 83.70. Even with pressure from oil companies due to elevated oil prices.

“Overall, positive economic indicators such as a good growth rate, stable inflation, a reduced fiscal deficit, record-high RBI forex reserves, and a pipeline of inflows are all supportive factors that should ideally bolster the rupee,” Pabari said, adding that given these factors, the rupee is expected to trade within a broad range of 83.20 to 83.70 levels.