The rupee strengthened by 17 paise at 65.33 against the dollar today ahead of the announcement of RBI’s monetary policy review. The six-member monetary policy committee (MPC) is due to announce its decision today.

The dollar retreated globally as attention shifted to the likely composition of the new Federal Reserve board after the incumbent Chair Janet Yellen’s term ends.

According to forex dealers, the rupee sentiment was also buoyed as domestic equities remained firm.

Yesterday, the domestic currency ended lower by 22 paise at 65.50 against the greenback amid rising expectations of a rate hike by the US Federal Reserve.

Meanwhile, the benchmark BSE Sensex rose 44.16 points or 0.14 per cent to 31,541.54 in early trade.