In early trade on Monday, the rupee strengthened 9 paise to 82.31 against the US dollar due to a weaker US currency and an uptick in domestic shares.
The local unit began trading at 82.36 versus the dollar on the interbank foreign exchange, then rose to 82.31, gaining 9 paise from its previous finish.
On Friday, the rupee closed at 82.40 against the US currency.
The dollar index, which measures the strength of the dollar against a basket of six different currencies, decreased 0.11 percent to 103.
The benchmark for global oil, Brent crude futures, increased 0.04 percent to USD 75.02 a barrel.
In the domestic equity market, the 30-share BSE Sensex advanced 220.99 points or 0.38 per cent to 57,748.09 points. The broader NSE Nifty gained 76.10 points or 0.45 per cent to 17,021.15 points.
According to exchange data, Foreign Institutional Investors (FIIs) sold shares worth Rs 1,720.44 crore on Friday, making them net sellers in the capital market.
India's foreign exchange reserves increased by USD 12.798 billion to USD 572.801 billion in the week that ended on March 17.
The reserves had decreased by USD 2.39 billion during the previous reporting week, reaching a three-month low of USD 560.003 billion.
(We are on WhatsApp. To get latest news updates, Join our Channel. Click here)