The rupee on Wednesday rose by seven paise to 53.78 against the dollar in early trade at the Interbank Foreign Exchange on selling of the US currency amid increased capital inflows.

Forex dealers said dollar selling by exporters and a higher opening in the equity market mainly boosted the rupee sentiment.

The local currency had closed stable at 53.85 against the dollar on Tuesday.

Meanwhile, the BSE benchmark index Sensex rose further by 88.51 points, or 0.45%, to 19,649.55 in early trade on Wednesday.