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The rupee strengthened by 14 paise to 66.10 against the dollar in early trade on fresh selling of the US currency by exporters and banks.
The rupee had closed down by 5 paise at 66.24 against dollar at the Interbank Foreign Exchange yesterday.
Exporters and banks selling the US currency supported the rupee in early trade, dealers said, adding that the dollar's weakness against major world currencies also strengthened the rupee sentiment.
Domestic equity markets opened with losses which capped the rupee gains, they said.
The benchmark BSE Sensex fell by 227.25 points, or 0.88%, to 25,537.53 in early trade.
