The rupee on Tuesday appreciated by 14 paise against the US currency in early trade on capital inflows into the stock markets.
At the Interbank Foreign Exchange (Forex) market, the rupee appreciated by 14 paise to 46.23 a dollar. The rupee, on Monday, ended lower by 21 paise at 46.37/38.
Dealers said fresh capital inflows into equities by foreign funds and dollar's weakness against other currencies, mainly supported the Indian rupee.
Meanwhile, the benchmark Sensex rose by 169.95 points, or 1.03 per cent, to 16,525.98 points in opening trade.