The Indian rupee opened at 84.83 against the US dollar on Monday, a depreciation of 4 paise compared to the previous close of 84.79. The decline in the rupee is largely attributed to the uncertainty following the announcement of a leadership transition at the Reserve Bank of India (RBI). Shaktikanta Das will be succeeded by Sanjay Malhotra, sparking initial concerns in the market. However, markets quickly adjusted to the news, with experts noting that the RBI is closely monitoring banking system liquidity and may intervene if necessary.

Despite the uncertainty, Foreign Institutional Investors (FIIs) have turned net buyers in December after significant outflows in the previous months, helping to stabilize the domestic currency. The RBI's actions, including a buy-sell swap, have also provided support to the rupee. The broader global economic context is also playing a role, with central banks in the US, Japan, Pakistan, Thailand, and Indonesia set to announce their monetary policy decisions this week, potentially affecting global currency and interest rate expectations.

The US Dollar Index showed a slight decrease of 0.11%, while Brent crude oil prices dropped by 0.34%. These factors contribute to the overall environment in which the rupee is trading. Analysts forecast that the rupee will remain within the range of 83.75 to 85 in the near term as the market watches for further central bank announcements.