The rupee gained 16 paise to 82.66 against the US dollar in early trade on Monday as the American currency retreated from its elevated levels.
Forex traders said weak crude oil prices also lent some support to the local unit.
At the interbank foreign exchange, the domestic unit opened at 82.69 against the dollar, then gained ground and touched 82.66, registering a rise of 16 paise over its previous close.
In initial trade, the rupee also touched a low of 82.71 against the American currency. On Friday, the rupee closed at 82.82 against the US currency.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.13 per cent to 103.99.
Brent crude futures, the global oil benchmark, advanced 0.61 per cent to USD 83.51 per barrel.
In the domestic equity market, the 30-share BSE Sensex was trading 23.44 points or 0.04 per cent lower at 60,979.13. The broader NSE Nifty declined 33.95 points or 0.19 per cent to 17,910.25.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Friday as they offloaded shares worth Rs 624.61 crore, according to exchange data.