The rupee strengthened by 15 paise to 64.49 per dollar in early trade on selling of the US dollar by banks and exporters.
Stock markets opened on a firm note which supported the rupee in early trade, dealers said.
However, the US dollar's strength against major goobal currencies overseas capped the rupee's gain, they added.
The rupee had closed with gains of 20 paise at 64.64 a dollar at the Interbank Foreign Exchange market on Friday.
Meanwhile, the benchmark BSE Sensex surged by 227.44 points, or 0.75 per cent, to 30,692.36 in early trade.