The Indian rupee had lost 8 paise to close at 63.61 against the US dollar on Wednesday due to persistent capital outflows.
After three sessions of weakness, the rupee strengthened by 40 paise to 63.21 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amidst higher opening in the domestic equity market.
Forex dealers said besides selling of the American currency by exporters, gains in other currencies against the dollar overseas after the US Federal Reserve indicated interest rates would be hiked by mid-2015 and a rebound in the domestic stock market, supported the rupee.
Yesterday, the rupee had lost 8 paise to close at 63.61 against the dollar due to persistent capital outflows.
Meanwhile, the benchmark BSE Sensex regained the 27,000-mark by surging 395.67 points, or 1.48 per cent, to 27,105.80 in opening trade today.