The rupee  on Monday rose 2 paise to 77.64 against the US dollar, reflecting a weakening of the US currency in the international market. However, forex dealers warned that rising crude prices, continued foreign capital outflows, and depressed local stocks restricted the rupee's appreciation bias.

The local currency opened marginally higher against the greenback at 77.65 on the interbank forex market, with an intra-day high of 77.55 and a low of 77.67. It ultimately settled at 77.64, up 2 paise from the previous close.

On the domestic front, the BSE Sensex down 93.91 points, or 0.17 percent, to 55,675.32, while the broader NSE Nifty fell 14.75 points, or 0.09 percent, to 16,569.55. The dollar index, which gauges the strength of the greenback against a basket of six currencies, dropped 0.20 percent to 101.93. The global oil benchmark, Brent crude futures, climbed 0.60 percent to $120.44 per barrel.

According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 3,770.51 crore.

Meanwhile, the RBI's rate-setting panel, the MPC, began its three-day deliberations on Monday amid expectations of another raise in benchmark interest rates to keep inflation below the central bank's upper tolerance limit. On Wednesday, RBI Governor Shaktikanta Das will announce the Monetary Policy Committee's (MPC) conclusion.

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