The Indian rupee gained 21 paise to 46.27 against the US dollar in early trade on the Interbank Foreign Exchange on Monday.
The currency had gained 15 paise to Rs 46.48 against the dollar in the previous session.
Forex dealers said fresh foreign capital inflows into Indian equities were mainly responsible for the rupee's rise.
The Bombay Stock Exchange index Sensex surged 287.69 points to 19,087.35 in opening trade on Monday.
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