The rupee on Monday appreciated by 5 paise to 46.62 a dollar at the Interbank Foreign Exchange market in early trade on capital inflows by foreign funds.
Dealers said fresh capital inflows into equities by foreign funds kept the rupee sentiment firm. Firming Asian currencies against the dollar also provided some support to the rupee.
The rupee had ended 12 paise lower at 46.67/68 against the dollar in the previous session.
Meanwhile, the Bombay Stock Exchange index, Sensex rose by 43.25 points, or 0.24 per cent, to 18,445.07 points in opening trade today.