The rupee strengthened by 8 paise to 61.86 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid a higher opening in the domestic equity market.
Forex dealers said besides increased selling of the American currency by exporters and banks, the dollar’s weakness against rivals overseas supported the rupee.
Yesterday, the rupee recovered marginally by 2 paise to close at Rs 61.94 on suspected selling of the US currency by state-run banks on behalf of the RBI and mild recovery in stocks. It had plunged to a nine-month low of 62.25 against the dollar.
Meanwhile, the benchmark BSE Sensex rose by 60.62 points, or 0.21 per cent, to 28,128.18 points in early trade today.