Extending its rising streak for the third day, the rupee appreciated by 8 paise to 66.49 against the US dollar in early trade on Tuesday on continued selling of the American currency by banks and exporters.
Forex dealers said besides sustained selling of the greenback by banks and exporters, the dollar's weakness against other currencies overseas as investors await Federal Reserve Chair Janet Yellen's speech on monetary policy, backed up the rupee at the Inter-bank Foreign Exchange.
However, a weak trend in early trade in the domestic equity market capped the gains, they added.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
