The rupee today strengthened by four paise to 61.81 against the US dollar in early trade at the Interbank Foreign Exchange on fresh selling of the American currency by exporters amid sustained foreign capital inflows.
Besides a higher opening in the domestic equity market, reports of easing geopolitical tension between Russia and Ukraine also boosted the sentiment, forex dealers said.
They said, however, dollar's gain against other currencies
overseas capped the rupee's rise.
The rupee had gained 19 paise to close at 61.85 against the dollar yesterday.
Meanwhile, the benchmark BSE index Sensex rose by 123.47 points, or 0.57 per cent, to 21,333.20 in early trade today.