India's economic woes worsened on Friday with a surprise contraction in industrial production and a wider trade deficit, adding to troubles of the ruling alliance as it heads into a tough national election seeking a third term.
The U.S. dollar nursed broad losses early on Monday after surprisingly soft employment data raised doubts about how quickly the Federal Reserve can scale back stimulus.
The consumer price inflation data due to be released at 5:30 p.m. will be crucial for further near-term direction.
Gains in the domestic share market also aiding sentiment for the rupee.
The Sensex is trading up 1.3 percent as of 9.44 a.m.