The rupee edged up 5 paise to 95.82 against the U.S. dollar in early trade on Monday, after slipping 7 paise to 95.96 on Friday.
Brent crude fell 2.10% to $101.69, lifting the dollar index to 100.31, higher by 0.09 points.
Domestic equities rallied, with Sensex up 448.32 points to 74,743.28 and Nifty up 50.3 points to 23,396.70. FIIs net bought Rs 599.54 crore.
Foreign reserves fell by $4.924 bn to $780.782 bn in the week ending September 11, a decline driven by lower foreign currency and gold balances.
Analysts at Kotak Securities see the 96‑per‑dollar band as a stiff resistance, with RBI likely to intervene if the rupee breaches 96.40.