Forex traders said fresh capital inflows into equities by foreign funds kept the rupee sentiment firm.
Dollar losses against other Asian currencies also helped the rupeeās rise.
The rupee had ended 47 paise higher at Rs 44.47/48 against the American currency in the previous session.
Meanwhile, the Bombay Stock Exchange index Sensex rose by 187.76 points to 20,632.80 in opening trade on Monday.