The rupee gained eight paise to 81.66 per dollar in early trade on Thursday amid a weakening trend in the American currency in overseas markets. Forex dealers said a firming trend in the local equity market, inflow of foreign funds and crude oil prices falling below $80 per barrel supported the rupee.
The rupee opened at 81.69 per dollar in the interbank foreign exchange market and then recovered to 81.66 per dollar. This is an increase of 8 paise over the previous closing level.
The rupee had closed at 81.74 per dollar on Wednesday.
Meanwhile, the dollar index, which gauges the strength of the US currency against a basket of six currencies, declined 0.07 per cent to 101.40.
Global benchmark Brent crude oil futures rose 0.48 per cent to $78.06 per barrel.