The Indian rupee gained 20 paise to a five-month high of Rs 44.27 against the US dollar in opening trade at the Interbank Foreign Exchange on Monday.
Forex traders said fresh capital inflows into equities by foreign funds kept the rupee sentiment firm. Dollar losses against other Asian currencies also helped the Indian currency's rise.
The rupee had ended 47 paise higher at Rs 44.47/48 against the American currency in the previous session.
Meanwhile, the Bombay Stock Exchange index Sensex rose 187.76 points to 20,632.80 in the opening trade on Monday.