Mumbai: The rupee appreciated by 29 paise to trade at 59.79 against the US dollar in early trade on Monday on selling of the American currency by banks.
Forex dealers said sustained foreign capital inflows also supported the rupee but a lower opening in the domestic equity market and dollar gains against the euro limited the gains.
The rupee had rose by eight paise to close at 60.08 against the dollar on Friday on fresh selling of the US currency by exporters and some banks notwithstanding weakness in local equities and firm greenback overseas.
Forex dealers said sustained foreign capital inflows also supported the rupee.
Meanwhile, the benchmark BSE Sensex fell 39.77 points, or 0.17 per cent, to 22,319.73 in early trade on Monday.