The rupee appreciated in early trades against the dollar on the back of positive sentiments in the market and dollar sale by banks.
At 9:10 AM the rupee was trading at Rs 61.11 compared with previous close of Rs 61.22 per dollar.
However, currency dealers fear that approaching month-end dollar demand may put some pressure on the rupee.
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The positive sentiments are due to hopes that the US tapering would be delayed.