The rupee on Monday opened 3 paise up at 63.84 against dollar on account of selling of American currency by banks and exporters.
The local currency on Friday gained 21 paise and settled at a fresh four-month high of 63.87 a dollar.
Meanwhile, domestic equity markets opened on a flat note on Monday following global cues. The BSE Sensex was up 1.57 points at 34,058.40 at around 9.20 am (IST), while NSE Nifty index was down 5.80 points, or 0.06 per cent, at 10,524.90 at around the same time.
Foreign portfolio investors (FPIs) bought shares worth a net Rs 595.04 crore in the previous trading session as per provisional data released by the stock exchanges. Domestic institutional investors (DIIs) purchased shares worth a net Rs 461.37 crore, as per provisional data.
On year-over-year basis, the rupee appreciated by a whopping 405 paise, or 5.96 per cent, as compared to 2016-end level of 67.92.
Government yields advanced for the first time in four years, with the benchmark yield posting its largest annual gain in eight years on fiscal and inflation concerns amid increased borrowing and central bank pausing on further rate hikes.
The GoI benchmark 6.79 per cent 2027 bond yield declined to 7.33 per cent on Friday from 7.40 per cent in the previous session.