The rupee breached the key 53-level by gaining 26 paise to trade at fresh three-and-a-half-month high of 52.93 in early trade today against the dollar on sustained selling of the American currency by exporters amid continued capital inflows.Besides, a higher opening in the domestic equity market supported the rupee but yen's weakness against the dollar overseas capped the rupee's gains.The rupee strengthened by 3 paise to end at a three-and-a-half-month high of 53.19 in the previous session on Friday against the US currency on sustained dollar selling amid continued capital inflows.