The Indian rupee gained a marginal three paise in early trade today on capital inflow by foreign funds on expectation that the domestic markets may open strong, in tandem with other Asian bourses.
However, a weak basket of Asian currencies against the greenback, capped gains.
At the Interbank Foreign Exchange (forex) market, the domestic currency gained three paise to quote at 48.16 over yesterday's close of 48.19/20.
The local unit had dropped six paise against the American currency due to persistent fall in local stocks on fears of capital outflow from foreign funds yesterday.
Forex dealers said anticipation of the markets to open strong buoyed the rupee sentiment.
