The rupee is trading at 61.90/91 versus its close of 62.04/05, tracking gains in the domestic share market.
The pair is expected to hold in a 61.80 to 62.20 range during the session. The BSE Sensex is trading up 0.5 percent, in line with other Asian share markets.
The market is expected to remain largely quiet in lower volumes at year-end.
Rupee gains 11 paise in early trade
(PTI) The rupee gained 11 paise to 61.93 against the US dollar in early trade today on the Interbank Foreign Exchange market on increased foreign fund inflows.
Forex dealers said gains in other currencies against the American unit in the overseas market also supported the rupee.
The rupee had gained 10 paise to close at 62.04 against the dollar in Friday's trade amid gains in local stocks.
Meanwhile, the 30-share BSE Sensex rose by 104.82 points, or 0.50 per cent, to 21,184.54 in the early trade today.