The Indian rupee strengthened by 14 paise to Rs 44.04 against the US dollar in early trade on the Interbank Foreign Exchange today, boosted by a higher opening in the stock market.
However, dollar gains against the euro and other currency rivals overseas capped the rupee's rise.
The rupee ended 11 paise lower at Rs 44.18/19 against the dollar in the previous session on Friday on heavy demand for the American currency amid dollar firmness overseas and weak local equities.
Forex dealers said a higher opening in the stock market mainly kept rupee sentiment firm, but dollar gains against the euro and other currencies overseas -- after US President Barack Obama announced that top American lawmakers have reached an agreement to raise the US debt ceiling and reduce the budgetary deficit -- restricted the rupee's rise.
The Bombay Stock Exchange benchmark Sensex shot up by 242.87 points, or 1.33%, to 18,440.07 in opening trade today.
