The rupee strengthened by 28 paise to 87.81 against the US dollar in early trade on Wednesday, supported by a broad decline in the greenback amid expectations of a US Federal Reserve rate cut.

Forex traders said dollar weakness globally is boosting the rupee, while investors keenly await the outcome of the Fed’s policy meeting. Markets are pricing in a 25-basis-point rate cut, with focus on Fed Chair Jerome Powell’s remarks for further cues.

At the interbank foreign exchange market, the domestic currency opened at 87.84 per US dollar and soon rose to 87.81, marking a gain of 28 paise from its previous close.