The Indian rupee rose by 26 paise to Rs 49.14 per US dollar in early trade on the Interbank Foreign Exchange on Wednesday, supported by euro gains against the American currency and a rebound in the domestic stock market.
Dealers said gains registered by the euro and other currency rivals against the dollar overseas and a higher opening in the equity market were responsible for the improved rupee sentiment.
The rupee has been on a losing streak over the past three sessions, declining by 25 paise to Rs 49.40/41 against the US currency in yesterday's trade on sustained dollar demand from banks and importers.
Meanwhile, the BSE Sensex recovered by 115.60 points, or 0.73 per cent, to 15,980.46 in opening trading on Wednesday.
* European finance ministers agreed on Tuesday to safeguard their banks as doubts grew about whether a planned second bailout package for debt-laden Greece would go ahead.
* At 9:17 a.m., the partially convertible rupee was at 49.1150/1200 per dollar, 0.6 percent stronger from Tuesday's close of 49.40/41.
* The euro was at $1.3291, higher than $1.3181 at the end of rupee trade on Tuesday, while the index of the dollar against six major currencies was down 0.44 percent at 79.249 points.
* The local benchmark share index rose 0.7 percent in early trade after closing at its lowest level in more than five week on Tuesday.