Moving in line with the stock market, the Indian rupee gained another 26 paise to 44.25 against the American currency in the early trade, on persistent selling of dollar by banks and exporters due to its weakness in overseas market.
At the Interbank Foreign Exchange (Forex) market, the local unit opened strong at 44.25/26 per dollar from its last close of 44.51/52 per dollar.
It moved in a range of 44.25 per dollar and 44.36 per dollar before quoting at 44.31/32 at 9.30 am.
The US dollar declined further against the euro, British pound and other major currencies in New York on Wednesday on indication that Federal Reserve policy makers are ready to implement another round of money-creating stimulus.
The Indian benchmark Sensex shot up further by 100 points, or 0.48 per cent, in the early trade.