The Indian rupee appreciated by 14 paise to trade below 50 level at 49.88 against the US currency in early trade today, on expectations of fresh capital inflows by foreign funds as domestic bourses may open in positive zone.
However, dollar's strength against some other Asian currencies, including Japanese yen, capped rupee's gains to some extent.
At the Interbank Foreign Exchange (Forex) market, the domestic unit was quoted higher at 49.88 a dollar, up by 14 paise over the previous close of 50.02/03.
Forex dealers said firming Asian bourses, which boosted hopes of capital inflows by foreign funds into the domestic stock markets, mainly supported the rupee.
The rupee ended 16 paise higher at 50.02/03 against the dollar in choppy trade on Thursday.