The Indian rupee today strengthened by three paise against the US currency in opening trade on dollar selling by exporters.

Weak dollar against some other currencies and hopes of fresh capital inflows by foreign funds into equity markets, which may open higher also supported the Indian rupee.

At the Interbank Foreign Exchange (Forex) market, the domestic unit gained 3 paise to quote at 48.88 a dollar over the previous close. Yesterday, the rupee closed five paise higher at 48.91/92.

Forex dealers said selling of US dollar by exporters and hopes of fresh capital inflows by foreign funds into equity markets, mainly supported the Indian rupee.