The rupee appreciated by 3 paise to 66.74 against the dollar in early trade today on increased selling of the US currency by exporters and banks amid higher foreign inflows.
Forex dealers said a weakening dollar against some currencies overseas and a higher opening in domestic equities kept the rupee rising.
Yesterday, the rupee had gained 20 paise to close at a fresh three-week high of 66.77 on sustained selling of the American unit amid strong recovery in domestic equities.
Meanwhile, the benchmark BSE Sensex rose 95.74 points or 0.35% to 27,105.41 in early session today.