The Indian rupee appreciated against the U.S. dollar in the morning session on Monday, as regional shares rose, led by a gain in banking stocks following an announcement of a merger of HDFC Ltd. and HDFC Bank.
A sharp drop in crude oil prices further aided market sentiment.
The benchmark S&P BSE Sensex jumped 1,201 points, or 2.03 percent, to 60,478, while the broader NSE Nifty index was up 303 points, or 1.72 percent, at 17,973.
The rupee was trading at 75.53 against the greenback, its highest level since March 2. The rupee is likely to challenge resistance around the 72.00 level.
