The Indian rupee on Wednesday strengthened by 9 paise to quote at almost six-week high of 47.86 against the US dollar in early trade on hopes of more capital inflows as local bourses may open on a strong note.
A weak dollar against other currencies also supported the Indian rupee, forex dealers said.
At the Interbank Foreign Exchange (Forex) market, the domestic unit appreciated by 9 paise at 47.86 a dollar over the previous close. Yesterday, the rupee closed 18 paise higher at 47.95/96.
Forex dealers said expectations of more capital inflows into equity markets, which rose to a 16-month high in yesterday's trade, mainly boosted the rupee sentiment.
The BSE Sensex had gathered over 672 points in the past five trading sessions. The benchmark Sensex yesterday gained over 145 points.