The Indian rupee today strengthened by 28 paise to trade at 63.02 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters and banks amid a higher opening in the equity market.
The Indian rupee settled at 63.30 against the dollar yesterday, up 41 paise over the previous day's close.
Traders said dollar selling by exporters and banks and the Reserve Bank revising the current account deficit at USD 56 billion in 2013-14, much lower than the quantum projected earlier, helped the domestic currency to strengthen.
They said, however, dollar's strength against other currencies overseas capped the Indian rupee's gains.
Meanwhile, the BSE benchmark Sensex soared by 260.18 points to 20,454.58, while National Stock Exchange's Nifty rose by 76.70 points, or 1.28 per cent to 6,066.30 in early trade.