The rupee appreciated by five paise to 42.02/03, against the US currency in morning trade on Monday, driven by surging Asian stocks amid a further sharp slide in global crude oil prices.
At the Interbank Foreign Exchange (forex) market, the local currency resumed stronger at 41.95/96 per dollar from its last weekend's close of 42.07/08 per dollar and later traded at 42.02/03 per dollar in late Monday morning deals.
Forex dealers said, the rupee drew support from falling oil prices as well as sustained surge in local stocks, raising hopes of revival capital inflows.
Dealers said there was some dollar buying by banks when the rupee opened strong at 41.95/96 a dollar.
The global crude oil prices dropped to its lowest in three months on August 8. It fell below $116 a barrel last weekend and was quoted at $116.38 a barrel in Asian trade on Monday morning.
The benchmark Sensex spurted by another 301 points in early trade on Monday.