The rupee on Wednesday gained 11 paise to 47.23 a dollar in early trade largely on the back of fresh capital inflows by foreign funds.
The rupee had lost 23 paise to close at an eight-week low of 47.34/35 against the dollar on Tuesday.
Dealers said capital inflows into the equities by foreign funds provided support to the rupee.
Besides weakness in dollar against major world currencies also supported the rupee sentiment, they added.
The Bombay Stock Exchange index, Sensex, rose by 105.35 points, or 0.58 per cent, to 17,983.49 points in opening trade.