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Indian rupee strengthened against the US dollar in early trade on Monday, as crude oil prices retreated from their elevated levels amid the prospect of a ceasefire deal in Gaza eased geopolitical tension in the Middle East. Moreover, foreign fund inflows and hopes of interest rate cuts by the Federal Reserve later this year also aided rupee sentiments. Foreign Institutional Investors were net buyers in the capital markets on Friday, as they purchased shares worth Rs 1,241.33 crore, exchange data showed. Meanwhile, US Federal Reserve Chair Jerome Powell’s semi-annual monetary policy testimony to lawmakers will be in focus on Tuesday and Wednesday. However, weakness in the Chinese yuan restricted the rupee’s further gains.

The partially convertible currency is currently trading at 83.47, stronger by 2 paise from its previous close of 83.49 on Friday. The currency touched a high and low of 83.48 and 83.44 respectively.