The Indian rupee appreciated by 23 paise to 44.25 a dollar in early trade today as foreign funds poured money into equities.
The domestic currency had closed 2 paise lower at 44.48/49 in the previous session on Tuesday. The market was closed yesterday on account of Ambedkar Jayanti.
Forex dealers said the rupee strengthened against the US currency largely on fresh capital inflows by foreign funds into equities and selling of dollar by banks.
Meanwhile, the Bombay Stock Exchange benchmark Sensex rose by 153.61 points, or 0.86 per cent to 17,975.57 in the opening trade today.