The rupee moved up by 9 paise to trade at 49.21 against the dollar on the Interbank Foreign Exchange market in early trade today on increased foreign fund inflows.
Dealers said increased foreign funds inflows mainly supported the rupee but demand for American currency from importers, restricted the gains.
The rupee had closed 3 paise lower at Rs 49.30/31 against the US currency yesterday.
Meanwhile, the 30-share BSE Sensex moved up by 84.59 points, or 0.46 per cent, to 18,513.20 in early trade today.