At the inter-bank foreign exchange market, the rupee strengthened by 11 paise, to 48.94 against the dollar, in early trade, today, on continued capital inflows and the dollar's fall against major world currencies, overseas.Dealers said increased foreign funds inflows and euro's gains against the US currency in the overseas market supportedthe rupee. The rupee had closed 46 paise higher at over three-month high of 48.69/70 against the US currency on Friday on continued dollar selling by exporters.