The rupee Monday rose by 5 paise to trade at 55.35 against the US dollar in early trade at the Interbank Foreign Exchange as the American currency weakened against euro overseas.
Dollar selling by exporters and banks, amid a higher opening in the domestic equity market also supported the rupee, dealers said.
Euro rose against the American currency overseas after Greece's two main pro-bailout parties clinched enough votes to form a government, they added.
The rupee had gained 40 paise to close at 55.40 against the American currency in the previous session on Friday.
Meanwhile, the BSE benchmark index Sensex regained psychological 17,000 points level by rising 153.02 points, or 0.90 per cent, to 17,102.85, its highest since May 4.