Rupee rallies 21 paise to 96.24 against US dollar on lower oil prices and forex inflows

The rupee rallied 21 paise to 96.24 against the US dollar on Monday, supported by lower oil prices and foreign exchange inflows. The currency closed at 96.24, compared with 96.45 on the previous session. Dealers attributed the move to a decline in crude oil prices, which reduces India's import bill, and continued inflows from foreign portfolio investors into local equities and debt. The dollar index held steady, offering little direction. The rupee's gains were also aided by a softer tone in Asian currencies. The Reserve Bank of India is likely to have intervened to smooth volatility, traders said. The 96.20 level is seen as a near-term resistance, with support at 96.50. Traders said the next catalyst for the rupee will be the US Federal Reserve's policy decision later this week, which could set the tone for the dollar. For more on forex markets, read our forex market analysis.