Likely corporate dollar inflows related to an Indian conglomerate was the major driver for the rupee's move, traders and analysts said.
There are possibilities of central bank intervention given that it has previously bought dollars in the 81.85-81.90 range, said Dilip Parmar, research analyst at HDFC Securities.
The appreciation in the rupee is also on the moderate side given the rise in the dollar index, Parmar said.
The dollar inflows into equities have also been helping the rupee, traders added.
The dollar index , on the other hand, has recovered from 15-month lows hit last week and was up 0.2% on Monday.
Persons:
Dilip Parmar, Parmar, India's, Avni Jain, Sonia Cheema
Organizations:
U.S ., HDFC Securities, Reserve Bank of India, U.S . Federal, European Central Bank, Bank of, FX, HDFC Bank, Sethuraman NR, Thomson
Locations:
BENGALURU, Bengaluru