Re appreciates by 12 paise to 48.82/$

The Indian rupee appreciated 12 paise against the US currency today 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 Indian 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 $.

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

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