The rupee depreciated by 4 paise to 72.87 against the US dollar in early trade on Monday following a strong American currency overseas and surging crude prices.
However, a positive trend in domestic equity markets and foreign fund inflows restricted the rupee's fall, forex traders said.
At the interbank foreign exchange, the domestic unit opened lower at 72.88 against the US dollar and recovered some ground to quote 72.87 in early deals, a fall of 4 paise over its previous close.
On Friday, the rupee had surged 29 paise to hit an eight-week high of 72.83 against the US dollar.
Global oil benchmark Brent crude futures rose 0.54 per cent to USD 66.80 per barrel.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, strengthened by 0.03 per cent to 90.03.
Foreign institutional investors were net buyers in the capital market on Friday as they purchased shares worth Rs 510.16 crore, as per exchange data.
On the domestic equity market front, BSE Sensex was trading 197.38 points or 0.39 per cent higher at 50,737.86, while the broader NSE Nifty advanced 39.35 points or 0.26 per cent to 15,214.65.
India recorded 2,22,315 new coronavirus infections in a single day, the lowest in around 38 days, pushing the total tally of COVID-19 cases to 2,67,52,447, while the death toll crossed the 3-lakh mark, according to the Union Health Ministry data updated on Monday.
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