The Indian rupee appreciated by 38 paise against the US currency in early trade today on expectations of fresh capital inflows by foreign funds into domestic stock markets.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted at 51.49 a $, a rise of 38 paise over the previous close of 51.87/89.
Forex dealers said hopes of fresh capital inflow from foreign funds into the domestic stock markets after a mixed trend on Asian bourses mainly supported the rupee.
Also, dollar selling by banks and exporters at higher levels and US currency falling against other major global currencies, including Japanese yen, also helped rupee gain against the greenback.
The rupee on Monday had ended 17 paise lower at 51.87/89 against the $.
