The rupee gained 16 paise to 48.91 against the U.S. dollar on the Interbank Foreign Exchange market in early trade on Wednesday on increased foreign fund inflows.

Dealers said increased foreign funds inflows mainly supported the rupee. Also, gains in euro against the dollar overseas kept rupee’s sentiments firm.

The rupee had closed 15 paise higher at Rs. 49.07/08 over its previous close against the dollar on Tuesday on fresh dollar selling by exporters amid rebound in equities.

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