The rupee strengthened by 13 paise to Rs 44.65 against the US dollar in early trade on the Interbank Foreign Exchange on Monday, helped by capital inflows and a firming trend in the stock market.
Dollar losses against the euro and other Asian currencies overseas also supported the gains.
The rupee had depreciated by 2 paise to close at Rs 44.78/79 against the US dollar in the previous session on sustained demand for the American currency from banks and corporates.
Forex dealers said increased capital inflows and the higher opening in the stock market, kept the rupee sentiment firm.
The Bombay Stock Exchange (BSE) benchmark Sensex moved up by 124.77 points, or 0.67%, to 18,643.58 in opening trade on Monday.