The rupee gained 21 paise to 60.45 against the US dollar in early trade at the Interbank Foreign Exchange market today amid sustained overseas capital inflows.
Increased selling of the American currency by banks and exporters amid sustained inflows of foreign funds supported the rupee, forex dealers said.
Besides, a higher opening in the domestic equity market also helped the rupee but the dollar's gain against other currencies overseas ahead of the US Federal Reserve chief's speech for any hint at when the bank will start raising interest rates, capped the rise, they added.
The rupee had retreated from three-week high and ended six paise down at 60.67 against the dollar on demand from importers for the US currency in yesterday's trade. Meanwhile, the benchmark BSE Sensex rose 82 points, to 26,444 points in early trade.
With inputs from PTI
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