The rupee strengthened in early trade on Friday following dollar's weakness against other Asian currencies.
Expectations of fresh capital inflows into the domestic equities, which may open sharply higher in tandem with other Asian markets also supported the rupee.
At the Interbank Foreign Exchange (Forex) market, the local unit strengthened by 32 paise to 46.88 a dollar. The rupee ended 14 paise higher at 47.20/21 in yesterday's volatile session.
Dealers said that the US currency weakening against other Asian units, expectations of a strong opening of the equity markets in line with firming trends in the Asian markets and dollar selling by exporters gave a boost to the rupee sentiment.