The rupee today strengthened by 28 paise to 53.49 against the US dollar in early trade on the Interbank Foreign Exchange after the Reserve Bank cut lending rate and cash reserve ratio (CRR) by 0.25 per cent each yesterday to perk up economic growth. Forex dealers said increased selling of the American currency by exporters and a higher opening in the equity market also helped the rupee sentiment.

The rupee had gained 14 paise to close at Rs. 53.77 against the US currency in yesterday's trade.

Meanwhile, the BSE benchmark index Sensex recovered by 72.48 points, or 0.36 per cent, to 20,063.38 in early trade today.