Rupee gains 4 paise against USD in early trade

The Indian rupee today appreciated by 4 paise against the US currency in early trade on hopes of fresh capital inflows into equity markets in line with firming trends on other Asian markets.

At the Interbank Foreign Exchange (Forex) market, the local unit appreciated by 4 paise to 46.81 a dollar. The rupee ended 13 paise lower at 46.85/86 in yesterday.

Dealers said expectations of fresh capital inflows into domestic equities by foreign funds which may open higher in tandem with other Asian markets mainly supported the Indian rupee.

Asian markets were up over one per cent in early trade. Dollar's firmness against other currencies, however, capped the gains of rupee, dealers said.