The rupee gained 23 paise against the dollar in early trade on Wednesday in line with other firming Asian currencies.
Continued capital inflows into equities by foreign funds also supported the gaining trend.
At the Interbank Foreign Exchange (Forex) market, the rupee appreciated by 23 paise to 45.98 a dollar. On Tuesday the rupee had ended at a two-week high of 46.21/22 after gaining 11 paise.
Forex dealers said continued capital inflows into equities by foreign funds also lifted the rupee sentiment.
Meanwhile, the benchmark Sensex rose by over 200 points, or 1.32 per cent, to 16,417.95 points in the opening trade.