The rupee strengthened by 8 paise to 73.24 against the dollar in early trade Monday on increased selling of the US currency by exporters and banks amid easing crude prices.
Forex dealers said weakness in the dollar against a few currencies overseas and early gains in domestic equities gave some support to the rupee.
At the Interbank Foreign Exchange, the rupee opened lower at 73.36 and dipped further to 73.38 but soon recovered the lost ground and rose to 73.24 on increased selling of the American currency by exporters and banks.
On Friday, the rupee had settled 29 paise higher at 73.32 against the US dollar, amid a weakening greenback.
Globally, Brent crude, the international benchmark was trading 0.44 per cent down at USD 79.65 per barrel.
Meanwhile, the benchmark BSE Sensex rose 321.41 points, to 34,637.04 in opening trade.