The rupee rose by 12 paise to 54.73 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 on strong Spanish bond auction and upgrade to Greece's credit rating supported the rupee, dealers said.

The rupee had closed flat at 54.85 against the US dollar in yesterday's trade amid RBI keeping key rates unchanged in the mid-quarter policy review.

Meanwhile, the BSE benchmark index Sensex surged further by 121.82 points, or 0.63%, to 19,486.57.