The rupee on Monday appreciated by 9 paise to 53.75 against the US dollar in early trade at the Interbank Foreign Exchange on selling of the American currency by exporters and banks.
Besides, a lower opening in the equity market and strengthening of the euro against the dollar overseas also supported the rupee, forex dealers said.
The BSE benchmark Sensex fell by 81.43 points, or 0.43 per cent, to 18,600.88 in the early trade today.
Brokers said, the Asian shares fell on today as risk sentiment was dented by lacklustre earnings from leading US companies, and a bigger-than-expected fall in exports from Japan, a key driver of the world's third-biggest economy.
The Canadian dollar stood out from the crowd on today, falling to a two-month low as the market positioned for a more dovish Bank of Canada in the wake of tame inflation numbers, while the yen stayed under pressure amid more policy easing expectations.
The rupee Friday fell by a whopping 43 paise to close at one-month low of 53.84
"The gains in Euro on account of Spanish regional elections also supported the rupee. We expect the rupee to trade within the range of 52.50-54.00 for the next couple of months," said Abhishek Goenka, Founder & CEO, India Forex Advisors.
The premium for the forward dollar recovered on fresh payments from banks and corporates.
The benchmark six-month forward dollar premium payable in March settled slightly better at 136-138 paise from last Friday's close of 135-1/2-137-1/2 paise.
The premium for far-forward contracts maturing in September also ended up at 277-279 paise from 274-276 paise.
The RBI has fixed the reference rate for the US dollar at 53.6735 and for euro at 70.0675.
The rupee also recovered against the pound sterling to 85.80 from last Friday's close of 86.37 and also recouped to 69.87 per euro from 70.23.
It also rebounded against the Japanese yen to 66.97 per 100 yen from last close of 68.03.
