The Indian rupee appreciated by 31 paise against the $ in early trade today due to increased capital inflows by funds on expectation that the domestic equity market will open in the positive zone.
At the Interbank Foreign Exchange (Forex) market, the local unit traded higher by 31 paise at Rs 49.61 against the US currency.
Forex dealers said fresh capital inflow into the Indian domestic market and US currency's weakness against other Asian currencies, supported the rupee.
Yesterday, the Indian rupee had ended 12 paise higher at 49.92/94 against the greenback.
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