The Indian rupee opened stronger on Monday, appreciating by 26 paise against the US dollar amid indications of support from the Reserve Bank of India (RBI), currency experts said.

The rupee opened at 89.1450 per dollar, recovering from its previous close of 89.4088.

Analysts noted that the 88.80 level has now emerged as a key technical support for the currency. A sustained close below this threshold could signal further strengthening of the rupee, they said.

The domestic currency had slipped to a record low of 89.49 on November 21, pressured by foreign portfolio outflows, uncertainty over a potential US-India trade agreement, and the absence of visible RBI intervention at the time.

In recent weeks, however, the central bank has been more active in the forex market, stepping in to curb excessive volatility and prevent sharp swings in the rupee.

“Rupee dropped sharply to a fresh all-time low of 89.60, declining by 0.90 paise or -1.02 per cent, as the lack of clarity on the India–US trade deal triggered strong selling,” analysts noted.

“With no progress on tariff rollbacks or trade assurances, overall sentiment remained risk-averse, weighing on the rupee,” they added.

Market watchers expect near-term weakness to persist, projecting a trading range of 89.20–90.00 for the currency.

Meanwhile, Indian equity markets opened on a positive note on Monday, tracking gains in global indices. The Sensex rose 122 points to 85,354, while the Nifty climbed 41 points to 26,109 in early trade.