The rupee on Monday rose 5 paise to 83.47 against US dollar in early trade. The rupee stayed on the upward track for a record seventh straight session and settled 10 paise higher at 83.55 (provisional) against the dollar on Friday.

The Indian rupee's recovery on Thursday will have to contend with a broadly higher U.S. dollar despite the Federal Reserve delivering a 50-basis-point rate cut. The 1-month dollar/rupee non-deliverable forward (NDF) declined to 83.

At the interbank foreign exchange market, the Indian currency opened at 83.70 and inched up to 83.69 before trading at 83.70 against the greenback, registering a gain of 6 paise from its previous closing level.

In the domestic equity market, the 30-share BSE Sensex surged 1,359.51 points, or 1.63 per cent, to settle at its highest-ever closing level of 84,544.31, while the Nifty soared 375.15 points, or 1.48 per cent, to hit its fresh peak of 25,790.95.

Rupee strengthens against dollar on lower oil prices, foreign fund inflows, despite greenback's gains and Fed rate cut.