The rupee appreciated by 11 paise to settle at 74.91 (provisional) against the US dollar on Monday, tracking positive domestic equities and weak American currency.
At the interbank forex market, the rupee opened at 74.92 against the greenback, and touched a high of 74.89 and low of 75.03 during the session. It finally closed for the day at 74.91 against the American currency, up 11 paise over its previous close.
The domestic currency had settled at 75.02 against the US dollar on Friday.
Forex traders said positive opening in domestic equities, weak American currency and foreign fund inflows supported the rupee.
However, rising COVID-19 cases weighed on the local unit, they added.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.13 per cent to 95.81.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 415.16 points higher at 37,435.30, and the broader NSE Nifty rose 119.70 points to 11,021.40.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 697.08 crore on Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.60 per cent to USD 42.88 per barrel.
Meanwhile, the number of cases around the world linked to COVID-19 has crossed 1.45 crore and the death toll has topped 6.06 lakh.
In India, the death toll due the disease rose to 27,497 and the number of infections has crossed the 11-lakh mark, according to the health ministry.