The rupee appreciated by 14 paise to 71.58 against the US dollar in early trade on Monday as China's easing move and rate cut hopes by the US Fed enthused investors. Forex traders said market investors were optimistic about cut in interest rates by the US Federal Reserve following below-par US jobs data. Besides, China's easing move also enthused investors.
In a bid to inject more liquidity into the economy, the People's Bank of China on Friday said it would slash the amount of cash lenders must keep in reserve to its lowest level in 12 years. At the interbank foreign exchange the rupee opened at 71.72, then gained further ground and touched a high of 71.58, registering a rise of 14 paise over its previous close. Rupee had settled at 71.72 against the US dollar on Friday. Forex traders however said said weak opening in domestic equities weighed on the rupee.