The Indian rupee strengthened by 18 paise to Rs. 44.24 against the U.S. dollar in early trade on the Interbank Foreign Exchange today, extending its gains for the fifth straight session on the back of capital inflows and a firming trend in the stock market.
The rupee had appreciated by 17 paise to close at nearly a five-month high of Rs. 44.42/43 against the U.S. dollar in the previous session on heavy capital inflows amid the sale of dollars by exporters and banks.
Forex dealers said steady capital inflows and the higher opening in the stock market continued to keep the rupee sentiment firm.
In addition, firmness in other Asian currencies against the U.S. dollar also supported the rupee, they said.
The Bombay Stock Exchange benchmark Sensex shot up by 106.61 points, or 0.54 per cent, to 19,793.43 in opening trade today.
