In early trade, the rupee rose 5 paise to 72.88 against the US dollar.

The Indian rupee rose higher on Wednesday, tracking a jump in US Treasury yields and positive domestic equities with a jump of 32 paise in the previous session.

In the interbank foreign exchange market, the local unit opened at 72.97 against the US dollar, then at a higher level of 72.88 against the greenback, an increase of 5 paise from its previous close.

The rupee had gained 32 paise to close at 72.93 against the US currency on Tuesday.

Foreign exchange traders said that the local unit opened a positive note due to a stretch in US Treasury yields.

Reliance Securities said in a research note that bond yields fell on Tuesday following pleasant comments from US Treasury Secretary Janet Yellen.

The note states that markets will see global cues amid lack of any data on domestic markets.

However, most Asian currencies have weakened against the US dollar and may limit appreciation bias in the local unit, traders said.

Meanwhile, the dollar index, which estimates the strength of the greenback against a basket of six currencies, rose 0.23% to 92.16 from inflation data on Wednesday.

On the domestic equity market front, the 30-share BSE benchmark Sensex rose 285.55 points to trade at 51,311.03, and the broader NSE Nifty rose 85.30 points to 15,183.70 points.

Brent crude futures, the global oil benchmark, fell 0.80% to $ 66.98 a barrel.

Foreign institutional investors were net buyers in the capital market as they bought shares worth ₹ 2,801.87 crore as per exchange data on Tuesday.