The Indian rupee strengthened by 12 paise against the US currency today in early trade on dollar selling by banks amid hopes of fresh capital inflows by funds and firm opening on the domestic stock markets in line with higher Asian shares.
At the Interbank Foreign Exchange (Forex) market, the domestic currency traded higher at 48.80 against the US currency, a rise of 12 paise over the yesterday's close of 48.92/93 a dollar.
The rupee fell by 5 paise to close at 48.92/48.93 a dollar yesterday.
Forex dealers said dollar selling by banks on expectations of capital inflows by funds after Asian stock markets firmed up raised hopes that the domestic bourses may open in positive zone.
Dollar's narrow movements against other regional currencies also supported the Indian rupee, they said.
Among Asian markets, Hong Kong's Hang Seng was up 1.17 per cent, while Japan's Nikkei was up almost two per cent in early trade today.
