Indian rupee ended 19 paise higher at 72.81 per dollar, amid buying saw in the domestic equity market.
It opened 15 paise higher at 72.85 per dollar versus Friday's close of 73 and traded in the range of 72.74-72.88.
The Sensex was up 228.46 points or 0.44% at 52328.51, and the Nifty was up 81.40 points or 0.52% at 15751.70.
"In USDINR spot, 73.25-73.30 is a crucial resistance, a consistent above that can push prices towards 73.60-73.75 zone while 72.75-72.50 will act as a crucial support," said Rahul Gupta, Head Of Research- Currency, Emkay Global Financial Services.
"Rupee traded in a narrow range of 72.95-73.05 as the broad market kept muted sessions in dollar index as well as financial market globally. The range for rupee can be seen between 72.75-73.45," said Jateen Trivedi, Senior Research Analyst at LKP Securities.
Oil extended gains to hit fresh multi-year highs on Monday, underpinned by a brighter economic and fuel-demand outlook, while investors eyed the outcome of talks between Iran and world powers over a nuclear deal that is set to boost crude supplies.
Gold prices slipped on Monday as an uptick in the dollar dented the metal's appeal, although lower U.S. bond yields and prospects of a prolonged accommodative interest rate environment limited losses.