The rupee ended 12 paise up at 63.70 against the American currency on fresh bouts of dollar selling by banks and exporters amid huge expectations of a rate cut by the Reserve Bank on Tuesday.
Strong capital inflows as well as firm local equities bolstered the overall sentiment despite strong dollar overseas, forex dealers said.
The rupee resumed modestly higher at 63.80 against the week-end closing level of 63.82 at the Interbank Foreign Exchange and strengthened further to hit an intra-day high of 63.58 against the dollar.