The rupee recouped all its losses from the previous session to gain sharply against the dollar amid cautious trading and reduced liquidity with many markets closed for holidays.
According to Bloomberg, the domestic currency was last changing hands at 82.6512 per dollar, after falling 9 paise to close at 82.8650 in the previous session on Friday.
PTI reported that the domestic currency rose 16 paise to close provisionally at 82.66 against the US dollar.
"The rupee gained on a low volume day with the absence of cash dollar demand due to US holiday. It opened at 82.77 per dollar and then made a low of 82.8350 before some inflows brought it to 82.66," said Anil Kumar Bhansali, Head of Treasury at Finrex Treasury Advisors.
"The RBI has ensured for the moment that the rupee does not weaken beyond 82.90, but the point of concern is until when," he added.