The rupee appreciated by 31 paise to 69.39 against the US dollar in opening trade on Monday, driven by easing crude prices and higher opening in domestic equities.

Forex dealers said the local currency gained strength ahead of the Reserve Bank of India’s monetary policy meet. The Monetary Policy Committee, which decides on key interest rates, will hold a meeting on June 3, 4 and 6.

The rupee on Friday had settled at 69.70 to the US dollar.Meanwhile, the 10-year government bond yield was at 6.95 per cent on Monday, against previous close of 7.03 per cent on Friday.

The rupee opened strong at 69.48 at the interbank forex market then gained further ground and touched 69.39 amid a positive opening in domestic equities, displaying gains of 31 paise over its last close.

Forex traders said foreign fund inflows also supported the domestic currency.Foreign institutional investors remained net buyers in the capital markets, putting in Rs 676.15 crore on a net basis on Friday, provisional exchange data showed.