The rupee strengthened by 8 paise to Rs 49.85 per US dollar in the opening trade on the Interbank Foreign Exchange today on increased foreign capital inflows.
Dealers said higher opening in local equities amid sustained foreign fund inflows supported the rupee.
Yesterday, the rupee had ended marginally up by 4 paise at Rs 49.93/94 against the US currency on fresh selling of dollars by banks and exporters.
Meanwhile, the BSE benchmark Sensex shot up by 227.07 points, or 1.27%, to 18,040.69 in early trade.