The rupee today appreciated by 37 paise against the $ to Rs 49.72 in early trade on dollar selling by banks amid strong Asian equity markets.
Dealers at the Interbank Foreign Exchange (Forex) market said that there was heavy dollar selling by banks on expectation of some easing in foreign fund withdrawals as equity markets opened higher in line with global markets.
Dollar's weakness against other major currencies also boosted the sentiment, they added.
