The rupee today gained four paise to 54.94 against the dollar in early trade at the Interbank Foreign Exchange on increased selling of the US currency by exporters and banks amid sustained foreign capital inflows.

A higher opening in the domestic equity market and the strengthening of euro and yen against the dollar overseas also aided the rupee, dealers said.

The rupee had gained 25 paise to close at 54.98 against the dollar yesterday.