The rupee strengthened by 7 paise to Rs 45.35 a dollar in early trade today on weakness in the US currency against major world currencies.
Dealers said a higher opening in the stock markets also aided the rupee sentiment.
The rupee ended 10 paise higher at Rs 45.42/43 a dollar in the previous session following smart rally in equities and a sluggish dollar overseas.
Meanwhile, the Bombay Stock Exchange benchmark Sensex rose by 75.39 points, or 0.39 per cent, to 19,167.06 points in the opening trade today.
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