The Indian rupee strengthened by 10 paise to Rs 54.46 against the US dollar in early trade on Friday, extending its rising streak for the third day on the Interbank Foreign Exchange (Forex) market.
The domestic currency had gained 16 paise to close at one-week high of 54.56 against the dollar in Thursday's trade.
Forex dealers said increased foreign fund flows amid firm local equities, along with euro's gains against the American currency in the overseas market supported the rupee.
The 30-share BSE Sensex was trading 146.80 points, or 0.76 per cent, higher at 19,560.34 in morning trade.
