The rupee strengthened by 28 paise to close at 74.73 against the US dollar on Monday, ending its four-session losing run on the back of weakness in the greenback and positive domestic equities.
A fall in crude oil prices and improved risk appetite supported the local unit even as worries over surging COVID-19 cases restricted the gains.
At the interbank forex market, the local unit opened at 74.81 against the greenback and witnessed an intra-day high of 74.67 and a low of 74.88.
It finally ended at 74.73 against the American currency, registering a rise of 28 paise over its previous closing.
In the four sessions to Friday, the rupee had declined by 66 paise or 0.89 per cent on worries over a record surge in coronavirus cases and subsequent lockdowns in various parts of the country.
The dollar index, which gauges the greenback''s strength against a basket of six currencies, fell 0.08 per cent to 90.78.