The rupee appreciated 15 paise to 74.92 against the U.S. dollar in opening trade on Monday, supported by the recovery in domestic equities.
However, the surge in the rupee was restricted amid elevated crude oil prices and firm American currency.
Meanwhile, Finance Minister Nirmala Sitharaman will present the Economic Survey 2021-22, later in the day.
At the interbank foreign exchange, the rupee opened at 74.97 against the American dollar, then inched higher to quote 74.92, registering a rise of 15 paise from the last close.
In the previous session, the rupee had settled at 75.07 against the greenback.
According to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors, the rupee is expected to be in the range of 74.80 to 75.40 before the presentation of the Union Budget on Tuesday.
The market is now looking at the Union Budget, Bank of England and European Central Bank meetings and finally the Reserve Bank of India's Monetary Policy Committee meeting for further cues, Mr. Bhansali said.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.13 % lower at 97.14.
On the domestic equity market front, the 30-share Sensex was trading 838.6 points or 1.47% higher at 58,038.83, while the broader NSE Nifty advanced 251.10 points or 1.47% to 17,353.05.
Global oil benchmark Brent crude futures rose 1.24% to $ 91.15 per barrel.
Foreign institutional investors were net sellers in the capital market on Friday, as they offloaded shares worth ₹5,045.34 crore, as per stock exchange data.
