The Indian rupee on Monday gained 7 paise against the US currency in early trade on increased capital inflows into stock markets in line with firming global cues.
At the Interbank Foreign Exchange (Forex) market, the local unit appreciated by 7 paise to 46.54 a dollar. The rupee had ended 8 paise lower at 46.61/62 in the previous session.
Dealers said increased capital inflows into equities by foreign funds, which were up 0.41 per cent in first session of New Year mainly supported the Indian rupee.
Besides, the dollar weakened against other Asian curerncies, which boosted the rupee sentiment, they said.