The rupee strengthened by 11 paise to Rs 48.94 a dollar in early trade on the Interbank Foreign Exchange market today on increased foreign capital inflows.

Dealers said rupee gained due to foreign capital inflows and dollar's fall against major world currencies overseas.

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Meanwhile, the BSE benchmark index Sensex rose by 121.65 points, or 0.68%, to 17,828.71 in early trade.

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