The rupee rose 29 paise to 71.15 against the US dollar in the early session on Wednesday on increased selling of the American currency by exporters and banks amid a positive opening of the domestic equity markets.

At the Interbank forex market, the rupee opened higher at 71.19 and advanced further to quote 29 paise higher at 71.15 against the dollar.

Besides, the dollar falling against other currencies overseas on lingering worries about a global slowdown and continuing US-China trade tensions, supported the Indian rupee, forex dealers said.

However, sustained foreign fund outflows capped the gains, they added.

On Tuesday, the rupee had skidded by 16 paise -- its third straight session of loss -- to close at 71.44 against the US dollar amid strengthening of the greenback and heavy selling in domestic equities.

Foreign portfolio investors (FPIs) sold shares worth a net of Rs 78.53 crore, and domestic institutional investors (DIIs) were sellers to the tune of Rs 84.15 crore Tuesday, provisional data showed.

Meanwhile, the benchmark BSE Sensex rose 37.05 points, or 0.10 per cent, to 36,481.69 after rising to 36,521.47 in opening trade.