Forex dealers said fresh inflow of foreign funds and weakness in the dollar against other currencies overseas supported the rupee.
Robust foreign fund inflows supported the rupee but weakness in domestic equities in early trade capped the gains.
Mumbai: The rupee edged up 8 paise to 65.34 against the dollar in opening trade on Wednesday on fresh selling of the US currency by exporters.
Forex dealers said fresh inflow of foreign funds and weakness in the dollar against other currencies overseas supported the rupee.
However, a lower opening of domestic equities and a widening trade deficit to almost a three-year high capped the gains.
On Tuesday, the rupee had ended flat to close at 65.42 against the US currency due to fag-end demand for the greenback amid ballooning trade deficit.
Meanwhile, the benchmark BSE Sensex fell by 113 points, or 0.34 per cent, at 32,828.87 in early session on Wednesday.
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