The rupee rose marginally by 5 paise to Rs 50.04 per dollar in early trade on the Interbank Foreign Exchange on Wednesday on increased foreign capital inflows and euro gains against the American currency overseas.
Dealers said increased foreign capital inflows and RBI shifting its policy to support growth in its monetary policy review on Tuesday mainly kept rupee sentiment firm.
Also, euro's firmness against the American currency overseas had a positive impact, they said.
The rupee had closed flat at Rs 50.09 against the US dollar on alternate bouts of buying and selling.
Meanwhile, the BSE benchmark Sensex rose by 82.34 points, or 0.48 per cent, to 17,078.11 in early trade.