The Indian rupee appreciated by 11 paise against the dollar in early trade on Monday on expectations of capital inflows as the stock markets may open strong in line with other Asian equity markets.
At the Interbank Foreign Exchange (forex) market, the domestic currency was quoted at 48.11 a dollar, a gain of 11 paise over the previous close.
Dealers said rupee drew support from firming Asian equity markets, which raised hopes of increased capital inflows into the domestic stock markets.
Asian markets were trading higher by over 2 per cent in the morning trade.
However, dollar buying by oil refiners checked rupee's gain to some extent, dealers added.
In the previous session, the rupee had ended 22.50 paise higher at 48.22/23 against the US currency.