The Indian rupee strengthened by 8 paise to Rs 44.43 against the US dollar in early trade on the Interbank Foreign Exchange on Wednesday, aided by capital inflows and a firming trend in the stock market.
Dollar losses against the euro and other major currencies overseas also supported the gains.
The Indian currency had depreciated by 3 paise to close at Rs 44.51/52 against the US dollar in the previous session. Dealers said steady capital inflows and the higher opening in the stock market mainly kept the rupee sentiment firm.
The Bombay Stock Exchange benchmark Sensex moved up 88.28 points, or 0.45 per cent, to 19,633.63 in opening trade on Wednesday.