The rupee trades stronger at 54.67/68 versus Friday's close of 54.8050/8150 tracking a broadly strong euro, which is hovering near its two-week highs hit last week.
A choppy share market also fails to provide any clear direction. The Sensex down 0.2 per cent.
The pair is seen moving in a 54.60 to 55 range during the session.
Most Asian currencies trading weaker compared to the dollar.
Traders expect the pair to move higher later in the session.