Mumbai: The rupee rose 21 paise to 90.44 against the US dollar in early trade on Monday. The domestic currency got a boost from positive market sentiment after the finalization of the interim trade agreement between India and the US.

Forex traders said that although the rupee started weak, it soon recovered its lost gains and started trading with a positive trend. India and the US on Saturday announced the preparation of a framework for an interim trade agreement under which both sides will reduce import duties on several items to boost bilateral trade. Moreover, the decline in the dollar index and positive trend in the domestic stock market further strengthened investor confidence. The rupee opened at 90.66 against the US dollar in the interbank foreign exchange market. Then after gaining some gains it reached 90.44 which shows an increase of 21 paise from the previous closing price. The rupee fell 31 paise to close at 90.65 against the US dollar on Friday.

Meanwhile, the dollar index, which gauges the US dollar’s position against six major currencies, was down 0.05 per cent at 97.58. In early trade in domestic stock markets, Sensex rose 415.97 points to 83,996.37 points while Nifty rose 126.05 points to 25,819.75 points. The price of international standard Brent crude fell by 0.94 percent to $ 67.41 per barrel. According to stock market data, foreign institutional investors (FIIs) were buying on Friday and bought shares worth Rs 1,950.77 crore.