Indian rupee opened 10 paise higher at 66.79 against the US dollar on Tuesday on account of selling of American currency by banks and exporters. At 9.34 am, the local currency was trading 11 paise up at 66.78 against dollar. According to experts, weakness in the dollar against other currencies overseas on unexpected fall in a US manufacturing index made the rupee stronger. Meanwhile, domestic equity markets opened on a firm note following global cues and some short coverings.\u00a0Benchmark BSE Sensex was trading over 200 points higher at 27739 in the early trade, while NSE Nifty was up nearly 60 points at 8,579. On Monday, rupee closed lower by 17 paise at 66.88 due to increased dollar demand from importers and corporates. According to market experts, extremely bullish dollar sentiment overseas backed by an\u00a0expectation\u00a0of rate hike by the US Fed alongside an adverse spillover effect of USD 22.4 billion possible outflow in the wake of ongoing FCNR-B redemption largely added pressure on the local currency on Monday.