The rupee on Thursday appreciated by 14 paise to 46.76 a dollar in early trade on fresh capital inflows by foreign funds into equities.
The dollar weakened against major Asian currencies, which also supported the rupee sentiment, dealers said.
Increased capital inflows into equities by foreign funds mainly provided support to the rupee, they said.
The rupee had ended flat at 46.90/91 against the US currency on Thursday.
Meanwhile, the Bombay Stock Exchange index, Sensex rose by 68.58 points, or 0.43 per cent, to 18,248.22 points in early trade today.