The rupee appreciated by 25 paise to 52.26 per dollar in early trade today, as the US currency weakened against euro and other major currencies overseas.
Dealers said a firm domestic equity market also supported the local unit.
The rupee had gained 20 paise to close at a nearly three-week high of 52.51/52 per dollar yesterday on the Interbank Foreign Exchange on sustained selling of the US currency by exporters.
Meanwhile, the 30-share BSE Sensex rose 151.58 points or 0.96 per cent to 15,966.30 in the opening trade today.