Forex dealers said besides dollar selling by exporters and banks, a higher opening in the equity market also supported the rupee.
Meanwhile, the BSE benchmark index Sensex rose by 81.16 points, or 0.46 per cent, to 17,772.24.
The rupee had edged up by two paise to close at 55.73 against the dollar in the previous lacklustre session on Friday. The forex market remained closed yesterday on account of 'Eid-ul-fitr'.