Extending its rising streak for the second straight session, the rupee strengthened by 12 paise to trade at 60.12 against the US dollar in early trade today on sustained foreign capital inflows.
Increased selling of dollars by banks and exporters amid sustained foreign capital inflows also supported the rupee, dealers said.
Besides, a sustained rally in domestic equity market in opening trade also helped the rupee but the dollar's strength against other currencies overseas capped the rise, they added.
Yesterday, the rupee rose six paise to end at 60.24 against the dollar on fresh selling of the American currency by exporters and positive cues from a strong domestic stock market.
Meanwhile, the benchmark BSE Sensex rose 133.27 points, or 0.51 per cent, to trade at 26,159.07 in opening trade.