The Indian rupee appreciated by 8 paise against the dollar in early trade today largely on the back of fresh capital inflows by foreign funds into equities.

At the Interbank Foreign Exchange (Forex) market, the rupee strengthened by 8 paise to 44.56 a dollar. The domestic currency had closed 20 paise lower at 44.64/65 in the previous session on Wednesday.

Forex dealers said the rupee strengthened against the US currency largely on fresh capital inflows by foreign funds into equities and selling of dollar by banks.

Meanwhile, the Bombay Stock Exchange benchmark Sensex rose by 98.94 points, or 0.56% to 17,479.02 in the opening trade today.