The rupee on Thursday strengthened further by 43-paise to trade at fresh three-week high of 62.95 against the dollar in early trade boosted by consistent capital inflows and dollar sales by exporters.

The domestic currency has spurted by 425-paise or 6.28 per cent in last five straight sessions.

The rupee had gained 46-paise to close at 63.38 on Wednesday against the dollar on the back of fresh RBI steps to boost foreign fund inflows and hopes of a diplomatic solution in Syria.

Dealers said besides increased capital inflows driven by recent measures announced by the RBI, a higher opening in domestic equity market and dollar’s weakening against major currencies overseas helped the rupee rise.