The rupee rose by 10 paise to 59.29 against the dollar in early trade on Monday at the Interbank Foreign Exchange market on increased selling of the US currency by exporters.
Strengthening of the euro against the dollar in overseas market and a better trend in the domestic equity market also supported the rupee, forex dealers said.
The rupee had rose by a staggering 80 paise, its biggest single-day gain in last nine months, to close at 59.39 amid signs of strong fund inflows on Friday.
Meanwhile, the BSE benchmark Sensex rose by 60.88 points, or 0.31 percent, to 19,456.69 in early trade.