Firming equity markets and fall in global crude oil prices led the Indian rupee to surge further by 23 paise to 42.01/03, against the greenback in early trade.

At the Interbank Foreign Exchange (Forex) market, the rupee resumed at 42.08/10 a dollar and rallied further to breach the 42-mark at 41.97, not seen since July 24, 2008, before being quoted at 42.01/03.

A sharp rise of over 375 points in the Indian benchmark sensex helped the rupee rally. Most of the Asian indices were also trading distinctly firm this morning.

Yesterday, the rupee had appreciated by 25 paise.

Fall in global crude oil prices near USD 118 a barrel also supported the rupee as oil companies refrained from buying dollars in anticipation of further fall in dollar.

A status-quo stance taken by US Federal Reserve yesterday on interest rates also partly aided the rupee sentiment.