The Indian rupee recovered after a weak start and held steady at 47.87/89 against the greenback in early trade on Monday as local stocks rallied smartly ahead of the Budget to be presented during the day.
In lacklustre activity at the Interbank Foreign Exchange (forex) market, the domestic currency resumed weak at 47.94/96 a dollar from its last close of 47.89/91 a dollar but later recovered to 47.87/89 a dollar in late morning trade.
The activity in the exchange market was at a low ebb as investors remained cautious ahead of the budget.
Forex dealers said the market was static with no dollar buying or selling in the initial thirty minutes of trading.
Meanwhile, global oil prices fell to a five-week low of below USD 65 a barrel in Asian trade Monday morning.
Indian benchmark Sensex was up 119 points or 0.80 per cent at 1025 hours while Asian indices were mostly sluggish in early trade.