The rupee rose by 9 paise to trade at fresh two-week high of 55.27 against the US currency in early trade today on persistent dollar selling by exporters and some banks.
Dealers said a higher opening in the equity market supported the rupee. Weakness in euro against the dollar, however, restricted rupee's gains, they added.
The rupee had strengthened by 30 paise to close at two-week high of 55.36 against the dollar in Friday's trade on the back of capital inflows.
Meanwhile, the BSE benchmark index Sensex rose by 61.25 points, or 0.34%, to 17,810.90.