The rupee appreciated by 3 paise to 66.74 against the dollar in early trade on Wednesday on increased selling of the US currency by exporters and banks amid higher foreign inflows.

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Forex dealers said a weakening US dollar against some currencies overseas and a higher opening in domestic equities kept the rupee rising.

On Tuesday, the rupee had gained 20 paise to close at a fresh three-week high of 66.77 on sustained selling of the American unit amid strong recovery in domestic equities.

Meanwhile, the benchmark Bombay Stock Exchange (BSE) Sensex rose 95.74 points or 0.35% to 27,105.41 in early session on Wednesday.