The rupee was trading strong at 63.94 against the US currency on increased selling of the dollar by exporters and banks.

According to forex dealers, dollar's weakness against major world currencies overseas supported the rupee. Also, a strong domestic equity market propped up the rupee sentiment.

The domestic unit opened strong by 7 paise at 63.95 at the Interbank Foreign Exchange market today. It hovered in a range of 63.96 and 63.92 before quoting at 63.94, up 8 paise at 11.10 am local time.

Yesterday, the rupee had declined by 11 paise to close at 64.02 against the US dollar amid renewed global tensions in the wake of North Korea firing a missile that passed over Japan.

Meanwhile, the benchmark BSE Sensex was trading higher by 234.14 points or 0.75 per cent at 31,622.53.