At the Interbank Foreign Exchange (Forex) market, the domestic unit resumed better at 55.70 a dollar from previous close of 55.75.
Later, it moved in a volatile manner between 55.60 and 55.78 before concluding at 55.73 - two paise higher from the previous close.
Dollar selling was seen by exporters as also buying by importers, but demand was little bit more than supply, aiding the rupee rise, said forex traders.
On a weekly basis, the rupee weakened by 45 paise from last weekend's closing of 55.28 a dollar.
Globally, the dollar index was up by 0.06 per cent today against a basket of six major global currencies while New York crude oil was trading above USD 95 a barrel in Europe.
Pramit Brahmbhatt, CEO, Alpari Financial Services (India) said: "The rupee today witnessed one of its narrowest trading ranges (18 paise for the whole day) in last 10