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The rupee strengthened by 13 paise to 61.02 against the dollar in early trade at the Interbank Foreign Exchange market on Monday on increased selling of the American currency by exporters and banks.
Besides, the dollar's weakness against other currencies overseas and a higher opening in the domestic equity market also supported the rupee, forex dealers said.
The rupee had gained seven paise to close at 61.15 on Friday on suspected RBI intervention in the forex market.
Meanwhile, the benchmark BSE Sensex recovered by 221.20 points, or 0.87%, to 25,550.34 in early trade on Monday.