The rupee appreciated by 11 paise to 65.25 against the dollar today as increasing risk appetite pushed back the US currency amid a positive opening of the domestic equity market.

The risk-on approach pushed exporters and banks increasingly away from the dollar. The greenback ran out of luck overseas too, snapping its winning streak, as it fell against major peers.

According to forex dealers, the rupee uptrend got a leg-up from a strong equity market.

Yesterday, the domestic unit had ended marginally up by 2 paise at 65.36 against the American currency in a highly fluctuating trade.

The benchmark BSE Sensex rose 110.72 points or 0.34 per cent to 31,957.61 in early trade.