The Indian rupee gained 6 paise to 46.38 against the US dollar in early trade on the Interbank Foreign Exchange on Wednesday, supported by fresh capital inflows from foreign funds.
However, sharp gains made by the dollar against other major currencies limited the rupee's rise.
The rupee had ended 5 paise lower at 46.44/45 against the dollar in the previous session on dollar demand from banks and importers.
Dealers said continued capital inflows into Indian equities kept the rupee sentiment firm.
Meanwhile, the Bombay Stock Exchange index Sensex surged by 138.57 points, or 0.72 per cent, to 19,485.53 in opening trade on Wednesday.