The Indian rupee rose by 16 paise to 62.28 against the US dollar in early trade at the Interbank Foreign Exchange after the economy grew by a higher-than-expected 4.8 per cent in the September quarter.
The domestic currency had lost three paise to close at 62.44 against the dollar on Friday amid demand for the US currency from oil refiners.
Forex dealers on Monday said increased selling of the US currency by exporters, a higher opening in the domestic equity market and strengthening of euro and yen against the dollar overseas also supported the rupee.
The BSE Sensex rose 70.67 points, or 0.34 per cent, to 20,862.60 in early trade on Monday.