The Indian rupee advanced by another 16 paise to Rs 45.32 against the American currency in early trade on persistent selling of dollars by banks and exporters in view of weak dollar overseas.
The domestic unit resumed higher at Rs 45.37/38 per dollar at the Interbank Foreign Exchange (Forex) market as against the Monday’s closing level of Rs 45.48/49 per dollar. It firmed up further to Rs 45.32 per dollar before quoting at Rs 45.38/39 per dollar at 1030 hours.
It hovered in a range of Rs 45.32-45.45 in the morning deals.
Banks and exporters preferred to reduce their dollar position on the back of weakness of dollar in the global market, a forex dealer said.
The dollar gave up gains against the euro in New York market yesterday, after recovering from earlier gains.