Mumbai: The rupee appreciated by 9 paise to 69.47 against the US dollar in early trade Thursday driven by weakening of the greenback in overseas markets and sustained foreign fund inflows.
Forex dealers said, selling of the American currency by exporters, fresh foreign fund inflows and positive opening in domestic equities supported the rupee.
At the interbank foreign exchange, the rupee opened on a weak note at 69.60, but gathered momentum and rose to a high of 69.47 against the US dollar, showing 9 paise gain over its previous closing.
The local unit, however, pared some gains and was quoted at 69.54 against the American currency at 0951 hrs.
The rupee had settled at 69.56 against the US dollar on Tuesday.
Currency market was shut on Wednesday on account of Maharashtra Day.
Meanwhile, foreign institutional investors (FIIs) remained net buyers in capital markets, putting in Rs 114.59 crore Tuesday, according to provisional exchange data.
Brent crude futures, the global oil benchmark, fell 0.29 per cent to trade at USD 71.97 per barrel.
Domestic bourses opened on a cautious note Thursday with benchmark indices Sensex trading 43.96 points up at 39,075.51 and Nifty down 7.15 points at 11,741.00.
Meanwhile, the US Federal Reserve officials held key interest rates steady amid lack of inflationary pressures.