The Indian rupee appreciated by 7 paisa to 46.68 a dollar in early trade on the Interbank Foreign Exchange Thursday, largely on the back of fresh capital inflows by foreign funds and dollar’s losses against other currencies.

The rupee had lost 9 Paisa at 46.75/76 against the dollar in Wednesday’s trading.

Forex dealers said capital inflows by foreign funds and selling of US Dollars by banks on appreciation of euro against the dollar provided support to the rupee.

Meanwhile, the Bombay Stock Exchange index, Sensex rose by 12.77 points or 0.07 per cent to 17,970.14 points in early trade Thursday.