The Indian rupee appreciated by 14 paise to 44.38 a dollar in early trade today as foreign funds poured capital into equities.
The domestic currency had closed 21 paise higher at 44.52/53 in the previous session.
Forex dealers said increased capital inflows by foreign funds into equities caused the rupee to appreciate, but the gains were restricted as dollar strengthened overseas.
Meanwhile, the Bombay Stock Exchange benchmark Sensex rose 94.97 points, or 0.54 per cent to 17,555.55 in the opening trade today.
