The rupee on Thursday strengthened by 15 paise to trade at 55.33 against the US dollar in early trade on the Interbank Foreign Exchange, as the American currency weakened against other currencies overseas.
In addition, dollar selling by banks and exporters and a higher opening in the equity market also supported the rupee.
Dealers said apart from gains in euro and the Asian currencies against the American currency overseas, higher opening in the domestic equity market and selling of dollars by exporters and some banks supported the rupee.
The rupee had lost 37 paise to close at 55.48 against the dollar on Wednesday on fresh dollar demand from importers and banks.
Meanwhile, the BSE benchmark index Sensex rose by 128.84 points, or 0.75%, to 17,313.85 in early trade on Thursday.