The rupee gained 17 paise to close at 74.22 (provisional) against the US dollar on Monday, supported by a firm trend in domestic equities and a weak American currency overseas.
However, surging crude prices in the international market restricted the rupee’s gains, forex traders said.
At the interbank forex market, the local unit opened strong at 74.27 against the greenback and moved in a range of 74.22 to 74.30 in day trade.
It finally ended at 74.22 against the American currency, registering a rise of 17 paise over its previous close. On Friday, the rupee had settled at 74.39 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, dipped 0.25 per cent to 93.27.
On the domestic equity market front, the BSE Sensex ended 226.47 points or 0.41 per cent higher at 55,555.79, while the broader NSE Nifty advanced 45.95 points or 0.28 per cent to 16,496.45.
Brent crude futures, the global oil benchmark, increased 3.45 per cent to $67.43 per barrel.
Meanwhile, foreign institutional investors were net sellers in the capital market on Friday as they offloaded shares worth Rs 2,287.03 crore, according to the exchange data.