The rupee appreciated 79 paise to 69.44 against the US dollar in opening trade Monday after exit poll results suggested another term for the ruling NDA government, even as crude oil prices firmed up.
Forex traders said investors welcomed the exit poll results that predict a thumping majority for the current BJP-led government.
Sentiments were also buoyed by positive opening in domestic equities.
The rupee opened at 70.36 the interbank forex market, then gained further ground to touch 69.44 per dollar, displaying gains of 79 paise against the greenback.
On Friday, the rupee had settled at 70.23 against the US dollar.
Foreign funds pulled out Rs 1,057.82 crore in the capital markets on a net basis Thursday, provisional data showed.
The benchmark BSE Sensex was trading with gains of 718.11 points, or 1.89 per cent, to quote at 38,657.65, while the NSE Nifty was trading at 11,615, up 207.85 points, or 1.82 per cent.
Meanwhile, brent crude, the global benchmark, was trading at 73.28 per barrel higher by 1.48 per cent.