The rupee strengthened by 10 paise to 66.08 against the dollar in early trade today at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks.
Forex dealers said, besides selling of the American currency by exporters and banks, the dollar's weakness against rivals overseas supported the rupee.
Yesterday, the rupee had recovered by 12 paise to close at Rs 66.18 per dollar on fresh selling of greenback by banks and exporters amid recovery in the equity market.
Meanwhile, the benchmark BSE Sensex fell by 38.30 points or 0.14% to 25,803.62 in early trade.