On March 2, the rupee closed at 73.37 against the US dollar.
The rupee rose 22 paise to 73.15 against the US dollar in early trade on March 3, supported by positive domestic equities and foreign exchange inflows.
In the interbank forex market, the local unit opened at 73.26 against the US dollar, then at a high of 73.15 against the greenback, a 22 paise increase from its previous close.
On March 2, the rupee closed at 73.37 against the US currency.
Reliance Securities said in a research note that the Indian rupee made its debut on Wednesday on a stronger note against the US dollar, based on improving risk appetite in regional currencies and optimism in the economic outlook.
In addition, most Asian currencies have started with gains on Wednesday, could support the local unit, the note added.
Meanwhile, the Dollar Index, which estimates the strength of the greenback against a basket of six currencies, rose 0.01% to 90.79.
On the domestic equity market front, the 30-share BSE benchmark Sensex was up 400.88 points to trade at 50,697.77, and the broader NSE Nifty rose 124.35 points to 15,043.45.
Foreign institutional investors were net buyers in the capital market, as they bought shares worth Rs 2,223.16 crore on March 2, according to exchange data.
Global oil benchmark Brent crude futures rose 0.41% to $ 62.96 a barrel.