A weakening dollar against other currencies overseas supported the rupee. 

The rupee rose by 7 paise to 68.50 against the dollar in early trade on Thursday at the Interbank Foreign Exchange market on fresh selling of the US currency by banks and exporters.

Forex dealers said a higher opening in the domestic equity market and a weakening dollar against other currencies overseas supported the rupee.

On Wednesday, the rupee had ended almost flat as it gained one paisa to 68.57 following fag-end selling of the American currency by banks and exporters.

Meanwhile, the benchmark BSE Sensex rose 68.66 points, or 0.16 per cent, to 23,127.59 in early trade.