Rupee appreciates by 12 paise to 48.82 a dollar

The rupee appreciated 12 paise against the US currency on Wednesday in early trade on expectations of a rise in the domestic stock markets in tandem with firm trend on other Asian equity markets.

However, the dollar's gain against some currencies and month-end demand for the greenback capped gains for rupee to some extent.

At the Interbank Foreign Exchange (Forex) market, the domestic currency traded higher at 48.82 against the US currency, a rise of 12 paise over the previous close of 48.94/95 a dollar.

Yesterday, the rupee rose by 31 paise to close at 48.94/95 a dollar.

Forex dealers said increased capital inflows by funds on hopes of firm opening on the domestic bourses supported the rupee.