USD/INR closed at 74.06 against its open at 73.94. Also, buying by foreign banks on arbitrage opportunity between the spot and one-month non-deliverable forward market supported the spot pair further."Dollar is strong. While some oil bids are there.
Brent crude oil prices plunged after a US government official said US was considering granting waivers to its sanctions against Iran's crude exports next month, and Saudi Arabia was said to be replacing any potential shortfall from Iran.
Brent crude oil futures for December delivery traded 1.46% down at $82.93 a barrel on Monday.
Meanwhile, the greenback edged higher against other major currencies as on safe haven bids after China's central bank eases policy amid strong US economic data.
Investors will focus on markets in China, following a decision on Sunday by the People's Bank of China (PBOC) to cut the level of cash that banks must hold as reserves in a bid to lower financing costs and spur growth amid concerns over the economic drag from an escalating trade dispute with the United States.
Reserve requirement ratios (RRRs) - currently 15.5% for large commercial lenders and 13.5% for smaller banks - would be cut by 100 basis points effective October.
Sensex provisionally ends 70 points higher with 17 components in the green.