The rupee appreciated by 7 paise to 85.46 against the US dollar in early trade on Thursday, buoyed by a weaker dollar, declining global crude oil prices, and a positive start in domestic equity markets.
Forex traders noted that continued FII outflows limited further appreciation of the local currency.
At the interbank foreign exchange, the rupee opened at 85.43 against the dollar and later moved to 85.46, registering a 7 paise gain from its previous close of 85.53 on Wednesday.