The rupee appreciated by 25 paise to 44.90 against the US dollar at the Interbank Foreign Exchange market in the morning trade today on capital inflow into equities by foreign funds.
Forex traders said that fresh capital inflow into equities by foreign funds kept the rupee sentiment firm.
They added that the dollar's losses against other major currencies also helped the rupee gain.
The rupee had ended 14 paise lower at Rs 45.15/16 against the US currency in the previous session.
Meanwhile, the Bombay Stock Exchange index Sensex rose by 129.19 points to 20,234.05 level in the opening trade.
