The rupee inched 4 paise higher to close at 77.54 (provisional) against the US dollar on Monday, supported by positive domestic equities and a weak American currency overseas.

Forex traders said the rupee consolidated in a narrow range as elevated crude oil prices and persistent FII outflows weighed on the local unit.

At the interbank forex market, the rupee opened at 77.53 against the greenback and moved in a range of 77.46 to 77.56 in the day's trade.

The rupee finally ended at 77.54, higher by 4 paise over its previous close of 77.58.

"Rupee continued to trade in a narrow range and volatility remained low despite gains in domestic equities. Dollar retraced against its major crosses after core PCE index number came in line with estimates," said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

"We expect the USD/INR to trade sideways and quote in the range of 77.20 and 77.80," Somaiya added.

On the domestic equity market front, the BSE Sensex advanced 1,041.08 points or 1.90 per cent to end at 55,925.74, while the broader NSE Nifty jumped 308.95 points or 1.89 per cent to 16,661.40.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.22 per cent to 101.44.

Foreign institutional investors remained net sellers in the capital market on Friday as they offloaded shares worth Rs 1,943.10 crore, as per stock exchange data.

Brent crude futures, the global oil benchmark, rose 0.39 per cent to USD 119.90 per barrel.