The rupee rose 16 paise to 82.66 versus the US dollar in early trade on Monday, as the US currency fell from its highs.
According to forex traders, the local currency has benefited from low crude oil prices.
The local unit started at 82.69 versus the dollar on the interbank foreign exchange, then rose to 82.66, a 16-paise increase from its previous closing.
In early trade, the rupee fell to a low of 82.71 versus the US dollar.
The rupee finished at 82.82 versus the US dollar on Friday.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, increased 0.13 percent to 103.99.
Brent crude futures rose 0.61 percent to $83.00 a barrel, the global oil benchmark.
The 30-share BSE Sensex was trading 23.44 points, or 0.04 percent, lower at 60,979.13 in the domestic equities market. The NSE Nifty fell 33.95 points, or 0.19 percent, to 17,910.25.
According to exchange statistics, foreign institutional investors (FIIs) were net sellers in the capital market on Friday, offloading shares worth 624.61 crore.