Rupee strengthened by 10 paise to 66.37 against the dollar in early trade at Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid higher opening in the domestic equity market.
Besides selling of the American unit by exporters and banks, dollar's weakness against some other currencies overseas supported the rupee, Forex dealers said.
Moreover, a higher opening in the domestic equity market supported the domestic currency, they added.
Forex and money markets were closed on Friday on account of Gudi Padwa.
On Thursday, the rupee had gained 19 paise to close at 66.47 a dollar on fresh selling of dollars by banks and exporters as the US currency weakened in global markets.
Meanwhile, the Sensex recovered by 115.56 points or 0.47 per cent to 24,789.40 in early trade.