The Indian rupee appreciated by 14 paise to 50.49 against the US currency in opening trade on Monday on hopes of increased capital inflows by foreign funds as domestic bourses are expected to open in positive zone in tandem with other Asian equity markets.
Dollar's weakness against some other Asian currencies and greenback selling by banks also supported the Indian currency.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted higher at 50.49 a dollar, up by 14 paise over the previous close of 50.63/64.
Dealers said firming Asian stock markets raised hopes of increased capital inflows by foreign funds into the domestic stock markets, which may open higher, mainly supported the rupee.
The rupee ended 25 paise lower at 50.63/64 in choppy trade on Friday against the dollar after the Sensex closed in negative zone with a fall of 35.07 points.
Meanwhile, Japan's Nikkei was up by 2.83 per cent, while Hong Kong's Hang Seng gained 2.99 per cent in early trade on Monday.