The rupee appreciated by 22 paise to 73.15 against the US dollar in opening trade on Wednesday, supported by positive domestic equities and sustained foreign fund inflows.
At the interbank forex market, the local unit opened at 73.26 against the US dollar, then inched higher to 73.15 against the greenback, registering a rise of 22 paise over its previous close.
On Tuesday, the rupee had settled at 73.37 against the American currency.
The Indian rupee started this Wednesday on a stronger note against the US dollar supported by improving risk appetite in the regional currencies and equities on optimism over the economic outlook, Reliance Securities said in a research note.
Further, most of Asian currencies have started with gains this Wednesday could lend support to the local unit, the note added.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.01 per cent to 90.79.
On the domestic equity market front, the 30-share BSE benchmark Sensex was trading 400.88 points higher at 50,697.77, and the broader NSE Nifty advanced 124.35 points to 15,043.45.
Foreign institutional investors were net buyers in the capital market as they purchased shares worth Rs 2,223.16 crore on Tuesday, according to exchange data.
Brent crude futures, the global oil benchmark, advanced 0.41 per cent to USD 62.96 per barrel.
For in-depth, objective and more importantly balanced journalism, Click here to subscribe to Outlook Magazine