Mumbai: The rupee turned stronger by 17 paise at 65.33 against the dollar in early trade Wednesday ahead of the announcement of RBI's monetary policy review.
The rate decision of the six-member monetary policy committee (MPC) is due today.
The dollar retreated globally as attention shifted to the likely composition of the new Federal Reserve board after the incumbent Chair Janet Yellen's term ends.
A higher opening in domestic equities aided the rupee uptrend, traders said.
Yesterday, the domestic currency ended lower by 22 paise at 65.50 against the greenback amid rising expectations of a rate hike by the US Federal Reserve.
Meanwhile, the benchmark BSE Sensex rose 44.16 points, or 0.14 percent, to 31,541.54 in opening session today.