The rupee strengthened by 32 paise to 66.14 against the US dollar in early trade today at the Interbank Foreign Exchange after the American currency tumbled against major world currencies as the Federal Reserve decided again not to increase interest rates.
Besides, increased selling of dollar by exporters and banks and a higher opening in the domestic equity market supported the rupee, dealers said.
The rupee had slipped 10 paise to end at 66.46 in the previous session on Wednesday on persistent demand for the American currency from banks and importers on the back of a higher greenback in overseas markets.
Forex market was closed yesterday on account of Ganesh Chaturthi.
Meanwhile, the benchmark BSE Sensex surged 315.96 points, or 1.22 per cent, to trade at 26,279.93.