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The rupee appreciated by 8 paise to 66.14 against the US dollar in early trade on increased selling of the American currency by exporters and banks.
Forex dealers said domestic equity markets opening with gains supported the rupee, but dollar's strength against other currencies overseas capped the gains.
The rupee had recovered by 26 paise to close at 66.22 against the US dollar yesterday on fresh selling of the greenback by banks and exporters.
The benchmark BSE Sensex rose by 242.93 points, or 0.94%, to 25,939.37 in early trade.
