Mumbai: The rupee strengthened by 26 paise to 62.05 against the dollar in early trade today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters and banks.
Forex dealers said besides selling of the American currency by exporters and banks, a higher opening in domestic stock market, supported the rupee.
The rupee had shed six paise to hit a fresh one-month low of 62.31 in yesterday's trade on persistent demand for the American currency from banks and importers in view of sustained foreign capital outflows.
Meanwhile, the benchmark BSE Sensex rose by 110.17 points, or 0.38 per cent, to trade at 28,915.27 in early trade.
