The rupee gained 10 paise to 74.92 per dollar on Monday, tracking positive domestic equities. The domestic currency had settled at 75.02 against the US dollar on Friday.
Strengthening of the US currency and rising COVID-19 cases weighed on the local unit, while positive opening in domestic equities and foreign fund inflows supported the rupee.
Meanwhile, the dollar index, that gauges the greenback's strength against a basket of six currencies, rose 0.15 per cent to 96.08.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 370.11 points higher at 37,390.25, and the broader NSE Nifty rose 108.35 points to 11,010.05.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 697.08 crore on Friday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.63 per cent to USD 42.87 per barrel.
Meanwhile, the number of cases around the world linked to COVID-19 has crossed 1.44 crore and the death toll has topped 6.05 lakh.
In India, the death toll due the disease rose to 27,497 and the number of infections has crossed the 11-lakh mark, according to the health ministry.