The rupee appreciated by 9 paise to 68.65 against the US dollar in opening trade Wednesday, driven by weakening of the greenback in overseas markets and sustained foreign inflows.
The rupee opened at 68.72 at the interbank forex market, then gained further ground and touched a high of 68.56. The local unit, however, pared some gains and was quoted at 68.65 against the American currency at 0926 hrs, displaying gains of 9 paise over its last close.
On Tuesday, the rupee had settled at 68.74 against the US dollar.
Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and positive opening in domestic equities supported the rupee.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 543.36 crore on a net basis Tuesday, as per provisional data.
Brent crude futures, the global oil benchmark, rose 0.49 per cent to USD 69.71 per barrel.
Meanwhile, the BSE benchmark Sensex was quoted above 39,200-level and the NSE Nifty went past the key 11,700-mark in early deals Wednesday.