The rupee opened strong and was trading 57 paise up to 61.08 against the dollar in early trade at the Interbank Foreign Exchange market on Wednesday as the greenback fell against other currencies overseas after the weak US jobs report fuelled hopes the Federal Reserve will keep its stimulus programme in place.
Besides, increased dollar selling by exporters and a higher opening in the domestic equity market also supported the rupee, forex dealers said.
The rupee had lost 13 paise to close at 61.65 against dollar in Tuesday's trade on sustained demand from importers and banks as investors awaited US jobs data.
Meanwhile, the BSE benchmark Sensex was trading over 100 points down in late morning trade on Wednesday.