The Indian rupee appreciated by 13 paise at 48.29 in early trade on Wednesday on expectations of capital inflows by funds as market may open higher in tandem with firming trends on other Asian equity markets.
Dollar's weakness against major currencies also supported the rupee to some extent.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted higher at 48.29 a dollar, a gain of 13 paise over the previous close of 48.42/44. Yesterday, rupee weakened by 22 paise weaker as BSE Sensex fell by 0.85 per cent cent after witnessing strong rally.
Forex dealers said rupee's rise against the dollar was mainly on hopes of increased capital inflows by foreign funds as stock markets may open on a positive note, tracking other Asian markets and dollar's weakness overseas.