Forex dealers said besides increased selling of the American currency by exporters and banks, a higher opening of the domestic equity market also supported the rupee but the dollar's strength against other currencies overseas on upbeat data and earnings, limited the rise.

In a major reform push, the government had on Saturday deregulated diesel prices.

The domestic currency had bounced back by 39 paise to close at 61.44 against the dollar on Friday.

Meanwhile, the benchmark BSE Sensex soared by 392.51 points, or 1.50 percent, to 26,501.04 in opening trade on Monday.