The Indian rupee rose by 23 paise to 50.22 against the US currency in early trade on Tuesday on hopes that foreign funds will pump money into the domestic markets, as they may follow the surge on the Asian bourses.Dollar's weakness against some other regional currencies also supported the Indian unit.
At the Interbank Foreign Exchange (Forex) market, the domestic currency was quoted higher at 50.22 a dollar, up by 23 paise over the previous close of 50.45/46.
Forex dealers said firming global equity markets raised hopes of increased capital inflows by foreign funds into the domestic stock markets, which may open notably higher, mainly influenced the rupee.
On Monday, the rupee ended 18 paise higher at 50.45/46 against the USD after the Sensex closed 5.10 per cent higher.
Japan's Nikkei was up by 1.50 per cent, while Hong Kong's Hang Seng gained 1.25 per cent in early trade on Tuesday.