Rising for the fifth straight day, the rupee extended gains by 11 paise to close at a one-month high of 74.55 against the US dollar on Monday on the back of a weak dollar and softer crude oil prices amid hopes of a diplomatic solution to the Russia-Ukraine crisis.

The local unit opened strong at 74.51 to a dollar and later spurted to the day's high of 74.35 as crude oil traded below USD 95 per barrel.

The rupee later gave up some of the gains due to losses in the domestic equity markets and forex outflows, before finally finishing at 74.55, showing a gain of 11 paise over the previous close.

The local currency had closed at 74.66 against the greenback on Friday.

"Rupee traded strong near 74.55 as dollar index weakness keep strength in rupee. Crude prices took a halt and trading below USD 95 has cheered the rupee market," said Jateen Trivedi, Senior Research Analyst at LKP Securities.

Dilip Parmar, Research Analyst, HDFC Securities, said the rupee rose to a one-month high as dollar index along with crude oil prices retreated on profit booking.

"It's second day in a row where rupee outperformed among Asian currencies all thanks to positive carry trades and speculators may have started front run of LIC IPOs inflows," Parmar said.

Dollar recovered from the day's low on reports of Russian President Vladimir Putin and US President Joe Biden having "no concrete plans" for a summit.

"Spot USD-INR is now having support at 74.30, the 200 days simple moving average... Resistance in the range of 74.80 to 74.85 in near term," Parmar added.

Meanwhile, the dollar index eased by 0.26 per cent to 95.79 after reports of a likely summit between the US president and the Russian president to discuss the Ukrainian border crisis.

Brent crude also traded down at USD 93.51 per barrel on hopes of a diplomatic solution to the Russia-Ukraine stalemate.