The rupee today strengthened marginally to 46.21 against the U.S. currency in early trade as the dollar remained steady in overseas markets.
At the Interbank Foreign Exchange market, the domestic unit gained 3 paise to 46.21 a dollar. The rupee had closed 49 paise lower at 46.24\25 a dollar in the previous trading session.
Dealers said the rupee moved in a thin range as local equities fell in early trade, while the US dollar traded steady against the major world currencies.
Some month-end dollar demand from importers also restricted the rupee movement, they said.
The Bombay Stock Exchange benchmark index, Sensex, fell by 120.50 points, 0.67 per cent, to 17,629.19 points in opening trade.