The rupee appreciated by 24 paise against the US dollar in early trade today -- the first day of 2009 -- following increased dollar selling by exporters amid fresh capital inflow on expectations of higher opening on the bourses after global markets rose.
However, dollar demand from importers capped rise in rupee value.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded stronger at 48.45 against the US currency, a rise of 24 paise over the previous close of 48.69/70 a dollar.
The rupee had lost 22 paise at 48.69/70 on the last session of 2008 yesterday.
Forex dealers said hopes of firm opening of Indian stock markets in line with global equity markets and further decline in inflation rate strengthen the rupee.
