The rupee strengthened by 18 paise to Rs 49.83 per US dollar in early trade on the Interbank Foreign Exchange today, tracking gains registered by euro and other currencies against the American currency.
Forex dealers said a strong opening in the stock market and dollar losses against the euro and other currencies overseas kept the rupee sentiment firm.
They added, however, that month-end dollar demand from importers restricted the gains.
The rupee had lost 21 paise to close at Rs 50.01/02 against the US dollar on Friday.
Meanwhile, the Bombay Stock Exchange 30-share index, Sensex, rose by 300.83 points or 1.79% to 17,086.47 in opening trade today.
