The rupee strengthened by 4 paise to 65.10 per dollar in early trade on mild dollar selling by exporters and banks. A firm trend at the domestic equity market also boosted the rupee sentiment, dealers said.
Yesterday, the rupee had lost 25 paise to 65.14 on fresh bouts of demand for the American currency from importers and banks amid rising uncertainty stemming from US President Donald Trump’s possible trade war.
In global trade, the US dollar had strengthened against the euro after European Central Bank President Mario Draghi signalled that any policy normalisation in the euro zone would be very gradual and President Trump formally announced tariffs on steel and aluminium imports. US trade partners Canada and Mexico will be exempted from the levies for now, leading their currencies to strengthen.
Meanwhile, the benchmark BSE Sensex rose 138.52 points, or 0.41 per cent, to 33,490.09 points in early trade.