The Indian rupee gained 18 paise to 46.86 against the US dollar in early trade on the Inter bank Foreign Exchange today. The value of the American currency fell against its major rivals.Capital inflows by foreign funds into equities, too, supported the rupee sentiment.The rupee had closed 11 paise lower at 47.05 against the dollar on Monday's volatile session.Forex dealers said the cautious approach exercised by investors ahead of the Reserve Bank of India's monetary policy review, which is scheduled later in the day, restricted the gains.