The rupee appreciated by 27 paise to 71.07 against the US dollar in early trade on Friday as gains in domestic equity market enthused investors.

At the interbank foreign exchange the rupee opened at 71.19, then gained further ground and touched a high of 71.07, registering a rise of 27 paise over its previous close.

Rupee had settled at 71.34 against the US dollar on Thursday.

Forex traders said weakening of the US dollar vis-a-vis other currencies overseas and higher opening in domestic equities supported the rupee.