The rupee strengthened by 36 paiseto 54.48 against the US dollar in early trade today at the Interbank Foreign Exchange on selling of American currency by exporters and banks. Besides, a higher opening in the domestic equity market and strengthening of the euro against the dollar overseas supported the rupee, dealers said.

The rupee had gained 61 paise, its biggest gain in two months at 54.84 in Thursday's trade helped by capital inflows worth nearly $300 million and sustained dollar sales by exporters.

Meanwhile, the BSE benchmark index Sensex surged by 141.86 points, or 0.74 per cent, to 19,312.77.