The rupee appreciated 5 paise to 76.15 against the US dollar in early trade on Monday tracking gains in the domestic equity market and sustained foreign fund inflows.
Forex dealers said a weak US dollar against major currencies overseas also helped the domestic unit.
However, rising crude prices and fresh spike in coronavirus cases restricted the gains.
The rupee opened strong at 76.16 against the US dollar, and inched higher to touch 76.15 against the US dollar, up 5 paise over its previous close.
It had settled at 76.20 against the greenback in the previous session on Friday.
Meanwhile, the equity benchnmark Sensex was trading 421.66 points, or 1.21 per cent, higher at 35,153.39. Similarly, the NSE Nifty surged 122.95 points, or 1.20 per cent, to 10,367.35.
Foreign institutional investors were net buyers in the capital market as they bought shares worth Rs 1,237 crore on Friday, according to provisional exchange data. The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.10 per cent to 97.52.
Brent crude futures, the global oil benchmark, rose 0.19 per cent to USD 42.27 per barrel. India’s COVID-19 death toll rose to 13,699, cases climbed to 4,25,282 with 445 new fatalities and 14,821 fresh infections, according to the health ministry.