The rupee gained 31 paise to Rs 50.56 against the American currency on the Interbank Foreign Exchange market in early trade on Tuesday on increased foreign fund inflows amid firm equity markets.
Dealers said besides increased foreign funds inflows, gains in euro and Asian currencies against the US currency in the overseas market supported the rupee.
The rupee had closed 53 paise higher at 50.87/88 against the dollar in the previous session on Friday following government’s assurance that it will not tax equity investments through participatory notes (P-Notes).
The forex and money market were closed on Monday for annual account closing.
Meanwhile, the BSE benchmark Sensex rose by 140.20 points, or 0.80 per cent, to 17,618.35 in early trade.
–PTI