The Indian rupee edged higher by five paise to 62.05 against the US dollar in early trade today at the Interbank Foreign Exchange on sustained selling by exporters.
The Indian rupee had gained 12 paise to close at three-week high of 62.10 in the previous session.
Besides strengthening of other currencies against the dollar in overseas market, increased capital inflows and fall in retail inflation supported the rupee, forex dealers said.
The Consumer Price Index (CPI), which was released yesterday after market hours, eased to two-year low of 8.79 per cent in January on account of fall in food prices.
The benchmark BSE Sensex rose by 38.38 points, or 0.19 per cent, to 20,486.87 in early trade today.