The rupee appreciated 9 paise to close at 87.93 (provisional) against the US dollar on Monday, supported by steady foreign fund inflows and easing crude oil prices.
Forex traders said positive sentiment in domestic equity markets also boosted the local currency.
At the interbank foreign exchange market, the rupee opened at 87.94 and moved between 87.74 and 87.94 during the session before settling at 87.93, up 9 paise from its previous close.