The rupee extended its early gains to close the day 33 paise higher at 72.46 (provisional) against the US dollar amid a lacklustre trend in the domestic equity market.
At the interbank forex market, the local unit opened at 72.71 against the greenback and witnessed an intra-day high of 72.40 and a low of 72.75.
It finally ended at 72.46 against the American currency, registering a rise of 33 paise over its previous close.
On Friday, the rupee had settled at 72.79 against the American currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, climbed 0.12 per cent to 91.78.
Meanwhile, Brent crude futures, the global oil benchmark, fell 0.01 per cent to USD 69.21 per barrel.
On the domestic equity market front, the BSE Sensex ended 397 points or 0.78 per cent lower at 50,395.08, while the broader NSE Nifty declined 101.45 points or 0.67 per cent to 14,929.50.
Foreign institutional investors were net sellers in the capital market as they offloaded shares worth Rs 942.60 crore on Friday, according to exchange data.