The rupee on Wednesday rose by 12 paise to 56.32 against the dollar in early trade at the Interbank Foreign Exchange market on continued selling of the US currency by exporters.
Forex dealers said strengthening of the euro against the dollar overseas, also supported the rupee.
They said, however, a weak opening in the domestic equity market capped the rupee’s gain.
The rupee had rebounded from 11-month lows to close with a hefty 32 paise gain at 56.44 against the US dollar in Tuesday’s trade on heavy selling of the American currency by exporters amid signs of FII inflows.