The rupee rose marginally by 2 paise to Rs 49.40 per dollar on the Interbank Foreign Exchange market in early trade today amid firm equity markets.
Dealers said gains in euro and and other Asian currencies against the US currency overseas also supported the rupee.
The rupee had closed 8 paise higher at Rs 49.42/43 against the dollar in the previous session on Friday.
Meanwhile, the BSE benchmark index Sensex rose by 51.99 points, or 0.29%, to 17,800.68 in opening trade.